The NSE Nifty 50 index finds resistance in the 23,710-23,740 zone after the Indian equity benchmarks extended its rally for the second straight session, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
"Going forward, the 23,710–23,740 zone is expected to act as an immediate resistance band. A sustained breakout above 23,740 could trigger an extension of the ongoing pullback rally towards the 23,900 level. On the downside, the 23,400–23,350 range remains a critical support zone," Shah said.
The Nifty index formed a small bullish candle with shadows in either direction, signalling extension of pullback for the second session in a row amid high volatility on account of the weekly expiry and volatile global cues, according to Bajaj Broking's market research.
The brokerage identified key short-term support in the 22,700–22,400 zone, which coincides with the previous gap area and the 78.6% retracement of the earlier major up move.
Bank Nifty
The Bank Nifty index finds resistance in the 55,250–55,300 zone in the near term, according to Sudeep Shah. "A decisive move above 55,300 could pave the way for further upside towards 55,800. On the downside, the 54,400–54,300 band is expected to provide crucial support," Shah said.
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The Bank Nifty index formed a small bullish candle with shadows in either direction, signaling extension of pullback for the second session in a row after recent sharp decline, as per Bajaj Broking. "Volatility is expected to remain elevated in the near term amid uncertain global cues and rising geopolitical tensions, which continue to weigh on overall market sentiment," the firm said.
Market Recap
Indian equity benchmarks extended rally for the second consecutive trading session. The BSE Sensex rose 0.7% or 550 points to close above 76,000 and the NSE Nifty 50 rose over 0.5% to settle near 23,600. Intraday, the 30-stock index rose as much as 801 points and the 50-share index rose as much as 1.1%.
Meanwhile, oil prices increased as uncertainty persisted over a US-led plan to secure shipping in the Strait of Hormuz. Brent crude gained 4% to $103.65 per barrel. West Texas Intermediate rose 4.2% to $97.08 per barrel.
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