India's benchmark equity indices ended higher with strength in heavyweights Reliance Industries, ITC and Bharti Airtel overpowering decline in bank stocks. However, a follow-through of this strength depends on US Federal Reserve's interest rate decision and status of the Iran war, analysts said.
The global cues turned negative late on Wednesday, as the Fed kept rates intact, and Donald Trump rejected a proposal by Tehran to reopen the Strait of Hormuz. The US president has ruled out a long-term truce pact, if Iran doesn't agree to give up its nuclear ambitions.
The US stock market edged lower for most of the session on Wednesday, with all three indices trading marginally in the red.
For the Indian markets, the immediate support is placed is placed in the 24,000-23,970 zone, which coincides with the 20-day EMA, accoring to Sudeep Shah, Head Technical and Derivatives Research at SBI Securities.
Whereas on the upside, immediate resistance for Nifty is placed in the 24,300-24,330 zone.
"We are of the view that the short-term trend is still in a positive zone, but a fresh uptrend rally is possible only after the index surpasses 24,215," said Shrikant Chouhan, Head Equity Research at Kotak Securities.
Nifty Bank
"Bank Nifty formed a small body bearish candle with a noticeable upper wick and a small lower wick, highlighting its continued inability to hold higher levels," Shah from SBI Securities said.
He added that sixth instance in the last 11 sessions where the index has rallied intraday but failed to sustain.
The immediate support for Bank Nifty is placed in the 55,000-54,900 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 54,600, followed by 54,300 in the short term.
On the upside, the zone of 55,900–56,000 zone is likely to act as an immediate resistance.
Market Recap
India's benchmark equity indices ended higher on Wednesday, with strength in heavyweights Reliance Industries, ITC and Bharti Airtel overpowering decline in bank stocks. The Nifty 50 settled 181.95 points or 0.76% at 24,177.65 and the BSE Sensex rose 609.45 points or 0.79% to close at 77,496.36.
Intraday, the Nifty reclaimed 24,300, rising 1.4%, and the BSE Sensex added over 1,000 points or 1.4% to just below 78,000.
Maruti Suzuki, Eternal, Bandhan Bank, Garden Reach Shipbuilders, Adani Total Gas, Cochin Shipyard and Astral were some of the most notable gainers today.
On the NSE, the Nifty FMCG surged the most, followed by Nifty Realty and Nifty Auto. The Nifty Media and the Nifty PSU Bank fell.
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