The Indian equity benchmarks ended the day with losses after profit booking emerged at higher levels. Gift Nifty traded 0.34% lower at 24,296.50 as of 10:43 p.m., indicating a gap down open for the benchmark on Wednesday.
"On the daily charts, it formed a bearish candle, indicating the possibility of further weakness from the current levels," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Accordingly, crucial support for Nifty lies at 24,300 levels, if it fails to sustain above this level the weakness could further extend up to 24,200–24,100 levels. On the flipside, if the benchmark manages to stay above the key support it could retest 24,500–24,550 levels.
"A decisive breakout and sustained move above 24550 could trigger fresh buying interest, paving the way for a sharp upside rally towards 24700, followed by 24850 in the short term," Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities stated.
Renewed tensions on the geopolitical front may also put pressure on the index after a QatarEnergy operated carrier Al Rekayyat was targeted during an apparent missile attack near the Strait of Hormuz, prompting fears around safety onthe route. Oil prices rose after the attack, with Brent Crude trading above $72 per barrel levels again.
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Bank Nifty
The Bank Nifty ended lower as well, though, analyst highlight that technical factors indicate a bullish bias for the index.
"From a technical perspective, the index continues to trade comfortably above its short-term as well as long-term moving averages, both of which are trending higher, reflecting a strong underlying bullish structure," said Shah from SBI Securities.
Therefore, the 58,700–58,800 zone is likely to act as a key resistance area, while on the downside immediate support is placed in the 57,800–57,700 zone.
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Market Recap
Indian equity benchmarks erased morning gains, halting a four-day gaining streak amid weekly F&O expiry and negative cues from global peers. The NSE Nifty 50 closed 31.65 points, or 0.13%, lower at 24,398.70, while the BSE Sensex fell 104.35 points, or 0.13%, to end at 78,180.72.
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