The NSE Nifty 50 faces crucial test at 23,150 level, as this would mark the first major resistance for the frontline index after logging three straight days of gains, according to analysts.
The resistance zone is around 23,150-23,300, said Shrikant Chouhan, head of Equity Research at Kotak Securities. On the flip side, if sentiments reverse and Nifty starts retreating, then 22,700 would act as the first major support level, he added, while adding that 22,550 would serve as the next critical support level.
Nifty may become more vulnerable if the 22,550 level is breached, the analyst said. "In such a scenario, traders may prefer to exit their long positions."
According to Bajaj Broking Research, a follow through strength above Monday's high of 23,000 will open further upside, and push Nifty towards 23,450 levels in the coming sessions.
"Failure to move above last week high will signal some consolidation in the range of 22,200-23,000 levels. While a breach below last week panic low of 22,182 will open further downside towards the key support area of 22,000-21,800," the firm said.
Bank Nifty
The Bank Nifty index see an immediate hurdle at the 53,000–53,100 zone, as per Sudeep Shah, head of technical and derivatives research at SBI Securities.
"Looking ahead, the 53,000–53,100 zone will act as an immediate hurdle for the index. A sustainable move above 53,100 could trigger an extension of the pullback rally toward 53,600, followed by 54,100 in the short term," Shah said.
"On the downside, 52,100–52,000 is expected to provide crucial support," he added.
ALSO READ: FPIs Sell Nearly Rs 30,000 Crore Equities In Just Three Trading Days Of April
Bank Nifty formed a second consecutive bullish candlestick pattern with a higher high and a higher low, signalling continuation of the pullback from the extreme oversold territory, according to Bajaj Broking.
"Going ahead, a follow through strength above Monday's high 52,704 will open further upside towards 53,500 levels. Failure to do so will lead to consolidation in the range of 50,000-52,700," the brokerage said.
Market Recap
India's benchmark equity indices ended sharply higher after volatile swings on Monday. The Nifty 50 and BSE Sensex reversed early losses to end more than 1% higher as strength in HDFC Bank and Axis Bank offset decline in Reliance Industries.
The Sensex closed 787 points or 1.07% higher at 74,106.85 and the Nifty gained 255 points or 1.12% to settle at 22,968.25.
The gap between the Nifty's session low and high was 456 points, indicating high volatility. On the sectoral front, oil and gas stocks declined the most on the NSE, while financial services, realty and PSU banks surged the most.
In the broader market, the Nifty Smallcap 250 matched gains of the blue-chip index while Nifty Midcap 150 outperformed.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
