The NSE Nifty 50 has found key support at 25,600-25,500 levels after ending its losing streak, according to Shrikant Chouhan, head of equity research at Kotak Securities.
On daily charts, the Nifty has formed a long bullish candle, and on intraday charts, it has formed a promising reversal pattern, which is largely positive, according to the analyst.
"As long as the market is trading above these levels, the pullback formation is likely to continue. On the higher side, it could bounce back to 25,800–25,875. On the flip side, below 25,500, the sentiment could change. If the market falls below this level, traders may prefer to exit their long positions," Chouhan said.
The index's near-term resistance has been identified at 25,750 levels with the next hurdle at 25,480, according to Bajaj Broking.
Bank Nifty
The Bank Nifty index mirrored Nifty's price action on the daily chart, indicating strong buying interest at lower levels, according to Bajaj Broking.
"A bullish engulfing candlestick has formed, highlighting robust demand near the 20-day EMA around the 60,000 mark. Going ahead, the index is expected to consolidate with a positive bias in the 60,000–61,500 range over the next few sessions," the brokerage said.
The immediate support for the index is placed at 60,400, followed by 60,200 being the confluence of short-term moving averages, while near-term resistance stands at 61,500, followed by the all-time high zone near 61,750, according to Bajaj Broking.
Chouhan identified key support zones at 83,000-82,700 levels.
Market Recap
Indian equity benchmarks reversed their course to trade at day's high after opening lower, ending days of losing streak. The BSE Sensex rose over 650 points to 83,277, recovering over 1,000 points from the day's low. and the NSE Nifty 50 gained 0.8% to end near 25,700. The giants in the benchmark indices were led by HDFC Bank Ltd. and Reliance Industries Ltd.
Thirteen out of 15 sectoral gauges tracked by NSE ended lower, led by the NSE Nifty Energy Index's 1.9% rally. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 0.7%.
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