The Nifty 50 is likely to witness a positive start on Wednesday, with GIFT Nifty trading 0.32% higher at 24,657.50, indicating a firm opening as traders watch whether the benchmark can challenge a key resistance zone near 24,800.
The benchmark index snapped its four-session winning streak on Tuesday, ending 159 points lower at 24,614 after profit booking through most of the session. However, a sharp 150-point surge during the Closing Auction Session (CAS), aided by gains in more than 10 Nifty constituents, helped the index recover a large part of its intraday losses.
According to Sachin Gupta, Vice President – Technical Research at Choice Equity Broking, the immediate hurdle for the index is placed in the 24,750-24,800 zone and a sustained breakout above this zone could revive bullish momentum. The expected trading range for the next session is 24,350-24,800.
He added that despite Tuesday's weakness, momentum indicators continue to remain supportive. "As long as the index holds above the 24,350-24,400 support zone, the broader trend is likely to remain constructive, although some consolidation may continue after the recent sharp rally," he said.
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Nandish Shah, Deputy Vice President at HDFC Securities, also maintained a constructive outlook. "Despite the profit booking from higher levels, Nifty remains in an overall uptrend, trading above all key moving averages," Shah said.
Bank Nifty Outlook
Bank Nifty is expected to remain range-bound in the near term, with analysts identifying the 58,200-58,300 zone as a key resistance area that could determine the index's next directional move. According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the banking index continues to exhibit a positive long-term structure despite a lack of strong momentum in the short term.
"However, momentum indicators and oscillators are currently signalling a sideways bias, suggesting a lack of strong directional conviction in the near term," Shah said. He expects the 58,200-58,300 zone to act as the immediate hurdle for the index.
"A sustained move above 58,300 could trigger a fresh upswing towards 58,800, followed by 59,200 in the short term," he added. On the downside, Shah identified the 57,400-57,300 region as the key support zone.
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