- The Indian equity benchmark rose on US-Iran truce optimism, boosting risk appetite
- Nifty faces resistance between 24,230 and 24,250, with support at 23,950-23,920
- Bank Nifty remains bullish, with resistance at 57,900-58,000 and support at 57,000-57,100
The Indian equity benchmark rallied for another session on Wednesday, as optimism regarding the truce deal between United States and Iran fuelled risk appetite. Analysts expect the positive momentum to continue in the short-term.
"On the daily chart, Nifty formed a small-bodied candle with a minor upper wick and a noticeable lower wick, indicating buying interest at lower levels," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
Accordingly, the immediate resistance for Nifty is placed between the 24,230 and 24250 levels. Any sustainable move above this zone could result in Nifty extending its rally towards 24,400, followed by 24,550 in the short term. On the Flipside, the immediate support for Nifty is placed in the 23950-23920 zone, as per Shah.
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"Investors will remain watchful of the US Federal Reserve's policy outcome. While the Fed is widely expected to keep interest rates unchanged, markets will closely monitor its commentary for cues on the future rate trajectory and any shift in policy stance," noted Siddhartha Khemka, the Head of Research and Wealth Management at Motilal Oswal Financial Services.
Bank Nifty
Nifty bank mirrored the benchmark's move and ended the day in the green even after profit booking emerged at higher levels. Going ahead, the trend for Nifty bank remains "firmly bullish" as per analysts
"The banking sector remains well positioned, with banking system credit growth at a robust 17.6%, supported by broad-based demand across corporate, retail and MSME segments," stated Khemka.
Therefore, the immediate resistance for Bank Nifty is placed in the 57900-58000 zone; while on the other hand, the immediate support for Bank Nifty is placed in the 57100-57000 zone.
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Market Recap
India's total market capitalisation crossed $5 trillion, regaining its position as the fourth-largest equity market. Benchmark indices extended gains for the fourth straight session, ending near six-week highs. Nifty 50 rose 0.40% to close at 24,085.70, while Sensex gained 0.45% to 77,155.62.
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