- Benchmark indices rose on optimism over US-Iran deal and positive global cues
- Nifty 50 closed at 23,853.90, gaining 0.98% or 231 points
- Nifty resistance at 24,100 could lead to 24,500 target if breached
The bechmark equity indices ended the day higher on optimism surrounding a deal between United States and Iran. While some weakness might emerge intraday for Nifty, analysts expect the near-term sentiment to remain positive.
"The underlying trend of Nifty continues to be positive. A sustainable move above the resistance of 24100 levels could open next upside target of 24500 in the near term," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
On the flipside, crucial support for the index is placed between 23,750 and 23,550; which is also the 50-day SMA (Simple Moving Average), as per Shrikant Chouhan, Head of Equity Research at Kotak Securities.
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"Going forward, investors will closely track the formal signing of the US-Iran agreement scheduled on June 19, crude oil price trends, FII flow dynamics and evolving inflation expectations for further market direction," said Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services.
Nifty Bank
The Nifty bank index also opened on above its previous highs, indicating a bullish momentum. According to SBI Securities' Head of Technical and Derivatives Research, Bank Nifty continues to trade comfortably above all its key moving averages, highlighting the strength of the prevailing uptrend.
"Going ahead, the zone of 57700-57800 is likely to act as an immediate hurdle for the index. A decisive move above 57800 could trigger a fresh round of buying, paving the way for an upside rally towards the 58500 level in the short term," Shah pointed out.
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On the other hand, the 56800-56700 zone remains a crucial support area, and holding above this range will be essential to maintain the positive bias.
Market Recap
Benchmark indices ended higher, supported by positive global cues linked to progress in US-Iran peace talks. The NSE Nifty 50 rose 0.98% to close at 23,853.90, up 231 points.The BSE Sensex gained 0.97% to 76,264.33, rising 736.38 points.
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