The NSE Nifty 50 is likely to commence trade in the green on Wednesday, after positive global cues from US markets, declining oil prices as well as the Nifty 50 index ending Tuesday's trading session positively. US markets opened higher with a rebound in chip stocks producing a spike in the tech-heavy Nasdaq Composite.
The GIFT Nifty futures saw a 0.02% downturn to 24,474 levels, at 9:46 p.m. on Tuesday.
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The Nifty 50 settled 115.50 points, or 0.48%, higher at 24,334.55. The Sensex ended 286.98 points, or 0.37%, higher at 77,656.09. The benchmarks returned to gains after falling on Monday, as the monthly futures and options contracts expired.
On the upside, the Nifty index sees the 24,480–24,500 zone as an immediate resistance, according to Sudeep Shah, head of Technical and Derivatives Research at SBI Securities.
As per Shah, a sustained move above 24,500 could trigger further upside towards 24,650 levels.
On the downside, 24,100–24,200 is the immediate support zone, followed by 24,000 and 23,900, as per Dhupesh Dhameja, derivatives research analyst, SAMCO Securities
Despite the strong recovery, the index has yet to sustain a move above the 24,350–24,375 zone, which includes the 200-day EMA at 24,374 and remains the key resistance level, according to Dhameja.
A sustained move above this range could trigger short covering and push the index towards 24,533, followed by 24,784. However, failure to break above this level could keep the index in a broader consolidation range, he said.
Bank Nifty
Going ahead, 57,100–57,000 will act as immediate support, while 57,900–58,000 will act as an immediate hurdle for the Bank Nifty, as per Shah. A sustained move above 58,000 could trigger a fresh rally towards 58,400 levels, the analyst stated.
"The banking benchmark remained range-bound, trading within nearly 400 points and forming a neutral candle with shadows on both sides, reflecting indecision at current levels. A decisive breakout on either side will be crucial for the next directional move," Shah said.
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Nifty Bank remains in consolidation mode within 57,000–58,000, as per Dhameja. The analyst recommended a 'Wait And Watch' approach to traders.
"A wait-and-watch approach is preferable until the index decisively exits this range. Sustained acceptance above 58,000 could trigger a fresh bullish leg, whereas a breakdown below 57,000 would shift the short-term bias in favour of sellers," he said.
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