The Indian equity markets extended their gains for a third consecutive session on Tuesday. Even as uncertain global cues may continue to be headwinds, analysts expect momentum to remain positive.
"The index formed a second consecutive high-wave candle with a higher high and higher low indicating consolidation with positive bias around the 26,000 levels," Bajaj Broking Research stated.
Short-term support for the index is placed between 25,500 and 25,400, while on the upside 26,200-26,300 will be the key resistance area in the coming sessions.
Shrikant Chouhan, Head Equity Research at Kotak Securities, was of the view that if the index slips below 25,900, there could be a brief intraday dip. Though, he said, "we are of the view that the short-term market outlook remains positive."
Bajaj Broking Research advised traders to see dips as a buying opportunity for the index.
Nifty Bank
Bias for the Bank Nifty index also remains positive, and dips should be seen as buying opportunity, according to Bajaj Broking Research.
"Bank Nifty formed a small bearish candle which remained contained inside previous session price range signaling consolidation amid stock specific action after previous 2 sessions strong up move," the research firm added.
Monday's high of 60,876 will lead to a further upside to 61,200 and 61,800 levels, while on the downside, key short-term support is placed in the 58,500–58,000 zone.
Market Recap
Indian equity benchmarks extended gains for a third straight session amid the F&O expiry, tracking positive global cues. The BSE Sensex closed over 200 points to end near 84,300, while the NSE Nifty 50 settled 0.3% higher at 25,935.15. Both the benchmark indices were led by the gains in Eternal, L&T and ICICI Bank.
Eleven out of 15 sectoral indices tracked by NSE ended higher, led by the NSE Nifty Auto. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser. The market breadth was tilted in favour of buyers as 2,600 stocks advanced and 1,644 shares declined on BSE.
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