The Indian benchmark indices felt the whiplash of US-Iran tensions on one hand and the Anthropic AI-induced IT stock selloff on Wednesday. However, Nifty and Sensex managed to end in the green. Analysts expect the momentum to remain volatile.
"The index formed a small bullish candle with shadows in either direction, signalling consolidation with stock-specific action," said Bjaja Broking Research.
The brokerage re-affirmed that as long as the index holds above immediate support levels of 25,450, the bias will remain positive. Holding beyond this level will open further upside to 26,000 and 26,350 levels in the coming sessions.
"Volatility is likely to remain elevated amid uncertain global cues and the upcoming RBI monetary policy announcement. We believe pullback from current levels should be viewed as a buy-on-dips opportunity, with strong support firmly placed around the 25,000-25,200," Bajaj Broking added.
Shrikant Chouhan, head of equity research at Kotak Securities, advised traders to engage in level-based trading amid a non-directional market structure.
Nifty Bank
The Nifty Bank index will also see sustained volatility on account of uncertain global cues and RBI monetary policy announcement.
"Bank Nifty formed a high wave candle with small real body shadows in either direction signaling consolidation amid stock specific action," stated Bajaj Broking Research.
Key resistance is placed between 60,800 and 61,700 levels, while on the downside 58,500–58,000 levels are the key short-term support area.
Market Recap
Towards the end of the session, Nifty rose 48.45 points, or 0.19%, to close at 25,776, while the Sensex gained 78.56 points or 0.09%, to finish at 83,817.69.
Benchmark indices underperformed the broader market. Nifty Midcap rose 0.6% and the Smallcap index gained 1.2%. Sector-wise, the IT index slumped 6% on AI related jolts, whereas auto, energy, consumer durables, PSU, realty, metal, oil & gas, and power stocks recorded gains of 1–2%.
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