The Indian equity benchmarks closed in the red on Wednesday tracking global cues after the US and Iran failed to reach an agreement ahead of the ceasefire expiry.
"On the daily chart, Nifty formed a bearish candle with minor upper wick, reflecting intraday selling at higher levels. The index also closed within the previous day's range, indicating a lack of directional conviction," stated Sudeep Shah, head of technical and derivatives research at SBI Securities.
Moreover, Nifty will likely face pressure in early trade on Thursday as indicated by the GIFT Nifty futures, which traded 0.3% or 70 points lower as of 10:51 p.m.
The index will find immediate support at 24,200–24,180 zone, Shah said. Sustaining above the immediate resistance zone of 24,530-24,550 will open up further upside to 24,700 and 24,850 in the short-term, as per the analyst.
However, for day traders, as long as the market trades below 24,500, the weak sentiment is likely to continue, Shrikant Chouhan, head of equity research at Kotak Securities said.
ALSO READ: Nifty, Sensex Halt Three-Day Gaining Streak; HDFC Bank, HCLTech Top Losers
Nifty Bank
The Bank Nifty index outperformed benchmarks on Wednesday, and will likely continue this display of strength, analysts said.
"While Nifty and Sensex continue to trade below their 100-day and 200-day EMAs, Bank Nifty has managed to close above these key moving averages for the second consecutive session, highlighting its relative outperformance versus the broader market," Shah pointed out.
Accordingly, immediate resistance for the index is placed in the 57,500-57,600 zone. Any sustainable move above this zone could result in Bank Nifty extending its up move towards 58,000, followed by 58,400 in the short term.
On the downside, the zone of 56,600–56,500 zone is likely to act as an immediate support.
Market Recap
Indian equity benchmarks halted a three-day gaining streak. The NSE Nifty 50 fell 0.8% to 24,378.10 and the BSE Sensex fell 0.9% to 78,516.49. The declines in the benchmark indices were led by HDFC Bank and ICICI Bank.
Broader markets outperformed the benchmarks. The Nifty Midcap 150 rose over 0.2% and closed higher for a second straight session, led by gains in IREDA and Exide Industries. The Nifty Smallcap 250 gained over 1%, also ending in the green for the second day, with Amara Raja rising over 16%.
ALSO READ: S&P, Nasdaq Rise On Iran Ceasefire Extension; Dow Jumps 400 Points
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
