The Nifty 50 has found support at the 25,600 zone and resistance at 25,950-26,000 on the higher side as the Indian equity indices logged their third consecutive trading session in the green, according to Shrikant Chouhan, head equity research, Kotak Securities
"We are of the view that the short-term support has shifted from 25,500 to 25,600 As long as market is trading above the same, the uptrend formation is likely to continue. On the higher side, 25,950-26,000 would act as a immediate resistance zone for the traders," Chouhan said.
"On the flip side, below 25,600, the sentiment could change. Below the same, traders may prefer to exit out from the trading long position," he added.
The index carried forward Tuesday's bullish momentum with sustained buying interest, closing firmly above its 21-day and 50-day extended moving averages, according to Bajaj Broking Research.
This move reflects improving short-term sentiment and renewed buying at lower levels. In the near term, the index is expected to oscillate within the 25,500–26,000 range, according to the brokerage. A decisive move beyond either end of the range could act as the next directional catalyst, it added.
"Immediate support is seen at 25,720, followed by 25,650, which may cushion minor declines. On the upside, resistance stands at 25,840 and then at 25,950," Bajaj Broking Research added.
"A sustained breakout above these levels could pave the way for further gains within the broader consolidation zone," it added.
Bank Nifty
In the near term, the index is likely to maintain a positive bias as long as it holds above the breakout zone, Bajaj Broking Research said. Trading above its key moving averages further reinforces the prevailing momentum and supports the possibility of continued upside in the short term.
The index formed a bullish candle and registered a higher high–higher low formation on the daily chart, indicating a positive bias and relative outperformance, according to Axis Securities.
"Immediate resistance is seen at 61,750, followed by 62,000, where some profit booking may surface. A decisive breakout above these levels could accelerate the ongoing uptrend. On the downside, supports have shifted higher to 61,150 and 60,800, highlighting strong demand at elevated levels," the brokerage said said in a note.
Market Recap
Indian equity benchmarks extended gains for the third consecutive trading session, led by the gains in Reliance Industries Ltd. and ITC Ltd. The BSE Sensex rose nearly 300 points to end at 83,734.25, while the NSE Nifty 50 rose 0.4% to end above 25,800. The broader markets — represented by the NSE Nifty 500 Index — outperformed benchmark indices, led by the 20% rally in Godfrey Phillips' stock.
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