The Indian equity benchmarks began the week in green and halted their three-day rout on Monday despite uncertainty around US-Iran truce talks. Analysts expect the bullish momentum to sustain in the coming sessions.
"A bullish candle on daily charts and a reversal formation on intraday charts indicate that a pullback formation is likely to continue in the near future," Shrikant Chouhan, Head Equity Research at Kotak Securities said.
Accordingly, 24,200–24,230 zone are key resistance levels for the index, highlighted Sudeep Shah, Head Technical and Derivatives Research at SBI Securities. He also pointed out that a move above 24,230 could lead to further upmove towards the 24,400 level.
"As long as the market is trading above these levels, the bullish sentiment is likely to continue," stated Chouhan
On the flipside, the 23,970–23,950 range is expected to provide strong support and help maintain the positive short-term trend.
"While technical supports have held for now, investors should remain selective, focusing on sectors with strong earnings visibility to navigate the ongoing volatility," advised Vikram Kasat, Head of Advisory at PL Capital.
The comment comes as global cues such as the stalled Iran-US truce talks may weigh on investor sentiment.
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Nifty Bank Outlook
Nifty Bank underperformed the benchmark indices, and a cloud of uncertainty remains on how the index will trade in the coming sessions.
"For the second consecutive session, it formed a small-bodied candle with shadows on both sides, indicating lack of clear direction," stated Shah from SBI Securities.
Going ahead 56,600–56,700 zone will act as a key resistance. A sustained move above 56,700 could lead to further upside to the 57,200 level. On the downside, the 55,700–55,600 range will act as immediate support.
Market Recap
Indian equity benchmarks ended higher, snapping a three-session losing streak. The Nifty closed about 0.8% higher for the day, with Sun Pharma emerging as the top gainer on the index, up nearly 7%.
Broader markets outperformed the benchmarks. The Nifty Midcap 150 rose nearly 1.5%, ending a two-day decline, led by gains in M&M Financial Services and NTPC Green. The Nifty Smallcap 250 climbed over 1.75%, also snapping a two-day losing streak, with Cohan Lifesciences up 20%.
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