Nifty on Wednesday halted its two-day rout and according to analysts the index is attempting a relief rally with resistance at 22,800. The primary trigger remained the evolving developments around the US–Iran conflict.
"Going ahead, the continuation of today's recovery will hinge on the progress and sustainability of de-escalation in the West Asia conflict. While recent developments have lifted sentiment, markets are likely to remain sensitive to incoming signals," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Nifty after recent sharp decline has approached extreme oversold territory in the short-term chart so pullback cannot be ruled out. A move above Wednesday high of 22,941 will open further upside towards 23,200 levels, said Bajaj Broking.
On daily charts, Nifty has formed a long bearish candle with a higher high and a higher low highlighting pullback from oversold territory.
Nifty Bank
Nifty Bank has formed a high wave candle with a higher high and a higher low highlighting pullback from oversold territory. However, the index has failed to sustain at higher levels and closed the session around 51,500 levels. For Bank Nifty, the immediate support is placed in the 51,100–51,000 zone, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
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According to Shah any sustainable move below this zone could result in Bank Nifty extending its weakness towards 50,800, followed by 50,500 in the short term. On the upside, the zone of 51,900–52,000 is likely to act as an immediate resistance.
Market Recap
Indian equity benchmarks rallied on Wednesday, halting a two-day losing streak amid positive global cues after the US President Donald Trump signalled an end to Iran war. The BSE Sensex rose as much as 2.6%, or 1,900 points, to 73,847.08 and the NSE Nifty 50 rose as much as 2.6% to 22,902.25.
Meanwhile, Brent crude for August 2026 traded at $88.03 a barrel on the chart. The contract was down $2.14, or 2.37%.
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