The NSE Nifty 50 has found resistance at the 25,600-25,650 levels after the index resumed gains, according to Hitesh Tailor, research analyst at Choice Broking.
The analyst also identifies support at 25,300–25,350, while the relative strength index at 46.77 signals neutral momentum with a slight bearish bias.
The index has formed a high wave candle with a small real body and long shadows in either direction that mostly remained contained inside previous session price range, signalling consolidation amid stock-specific action, according to Bajaj Broking's market research.
"A breach below Tuesday's low 25,327 will open further downside towards the 200 days extended moving average and the previous gap up area placed around 25,100-25,200," the brokerage said.
Bank Nifty
The Bank Nifty index finds resistance at 61,300–61,400 levels, while support is placed at 60,700–60,800 levels, according to Tailor.
The index formed a small bearish candle with small real body and shadows in either direction, signalling consolidation amid stock-specific action, as per Bajaj Broking.
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The firm suggested a buy-on-dips approach with short term support at 60,500-60,200 levels.
"Bias remains positive and we believe dips should be used as buying opportunity, with short-term support seen at 60,500-60,200 levels being the confluence of the 20 days EMA and the key retracement of previous up move," the brokerage said.
Market Recap
Indian equity benchmarks resumed gains on Wednesday, following Tuesday's rout. The BSE Sensex rose 50 points to close at 82,276 and the NSE Nifty ended 0.23% higher at 25,482.
The benchmark indices, however, erased morning gains as losses in Reliance Industries and SBI offset gains in ICICI Bank and Tata Consultancy Services Ltd. In the morning trading session, the 50-stock index had risen as much as 1% to 26,652, while the 30-stock index rose as much as 730 points to 82,957.
ALSO READ: Stock Market News Today Highlights: Nifty, Sensex End With Marginal Gains After One-Day Blip
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