The NSE Nifty 50 continues to face crucial resistance at around 26,000 levels, despite the boost from US Federal Reserve's rate cuts that propelled the frontline index for a second day in a row.
The immediate resistance for NSE Nifty 50 is placed at 25,950 to 26,000 levels, according to Bajaj Broking Research.
Shrikant Chouhan, Head Equity Research, Kotak Securities Chouhan also sees 25,950 as the immediate resistance, and a successful breakout pushing the market up to 26,000 to 26,075.
Moreover, Bajaj Broking expects the Nifty to trade within a broader 25,700 to 26,200 consolidation range.
According to Chouhan, 25,850 to 25,700 are the key support zones, and as long as the market trades above these levels, the uptrend is likely to continue. Rupak De, Senior Technical Analyst at LKP Securities, warned that a decisive break below 25,700 could give bears the upper hand.
Bank Nifty Outlook
The Bank Nifty formed a bullish candle, as per Bajaj Broking Research and the key short-term support is placed at 58,200 to 58,600 levels. A breach below this will signal a pause in the short-term uptrend, according to the analyst.
Bajaj Broking noted that 59,500 is the immediate resistance, while the key hurdle remains at the recent all-time high of 60,100. LKP's Vatsal Bhuva placed immediate resistance at 59,350, adding that a decisive close above 59,500 would confirm bullish momentum.
Market Recap
At the close, the Sensex was up 426.86 points or 0.51% at 84,818.13, and the Nifty gained 140.55 points or 0.55% to settle at 25,898.55.
The markets took strong support near 25,700 and 84,150 after an early morning dip and bounced back sharply, rallying over 200 to 700 points from the day's lowest point. All major sectoral indices closed firmly in positive territory.
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