The key resistance zone for the NSE Nifty 50 has moved to around 24,350 level amid positive global cues, with the US stock market scaling fresh highs following the ceasefire announced between the United States and Israel.
The benchmark Indian index faces crucial test at 24,320–24,350 levels, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
The GIFT Nifty, notably, was trading marginally higher on Thursday evening, indicating a positive start on Friday.
The ceasefire between Lebanon and Israel is expected to fuel expectations for a peace deal between Iran and the US. This, in turn, is expected to lower crude oil prices and support equity markets globally.
"Going ahead, the 24,320–24,350 zone is likely to act as a key resistance for the index. A sustained move above 24,350 could extend the pullback rally towards 24,500, followed by 24,650 in the short term. On the downside, 24,080–24,050 will serve as an immediate support zone for the index," Shah said.
The index formed a bearish candlestick pattern with a higher high and a lower low signaling consolidation with high volatility, according to Bajaj Broking Research.
"From a support perspective, immediate short-term support is positioned in the zone of 23,450–23,100. This region aligns with the recent gap area as well as the 20-day exponential moving average (EMA). Holding above this support band would help sustain the current pullback trend," the brokerage said.
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Bank Nifty
The Bank Nifty finds immediate resistance in the zone of 56,500–56,600, accordinng to Shah.
"A sustained breakout above the 56600 mark could provide fresh momentum and lead to an extension of the pullback towards 57,200, followed by the 57,700 levels in the short term. On the flip side, immediate support is placed in the 55,600–55,500 zone," Shah said.
"On the upside, a decisive close above 57,000 is likely to trigger further momentum, potentially leading the index towards the 58,000–59,200 range. This zone represents a confluence of the 6th of March gap area and 78.2% retracement of the recent decline 61,764 to 49,955," the brokerage said.
Market Recap
Indian equity benchmarks ended lower on Thursday after a relief rally on Wednesday. The BSE Sensex fell 0.2% or 123 points lower at 77,988.68 amid weekly F&O expiry. The NSE Nifty 50 fell 0.1% to end below 24,200.
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