As the NSE Nifty 50 witnessed a relief rally on Tuesday following a brutal sell-off in the preceding session, analysts expect the upcoming period to remain volatile for the Dalal Street.
The benchmark index is expected to consolidate in the range of 22,400-23,850 in the coming sessions, according to experts.
Bajaj Broking Research, in a note, said volatility is expected to remain elevated in the near term amid uncertain global cues, rising crude oil prices, and escalating geopolitical tensions. "Index needs to start forming higher high and higher low on a sustained basis and close above last week high of 23,862 to signal a pause in the current downtrend," it said.
"Momentum indicators are showing early signs of improvement from oversold levels, but continue to remain in a relatively weaker zone," said Ponmudi R, CEO of Enrich Money. This reinforces their view that the current move is more of a relief bounce rather than a confirmed trend reversal, with upside likely to face resistance unless supported by stronger triggers.
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Vinay Rajani, senior technical research analyst, HDFC Securities, sees Nifty facing stiff resistance at 23,378, with support clustered near 22,600.
Nifty Bank
The banking benchmark Bank Nifty also witnessed a gap-up opening on Tuesday and ended the day at 52,605, registering a healthy gain of 2.27%. "On the daily chart, it has formed a small-bodied candle with shadows on both sides, indicating a phase of indecision after the recent pullback," said Sudeep Shah, head - technical and derivatives research at SBI Securities.
Shah added that going forward, the zone of 53,000–53,100 will act as an immediate resistance area for the index.
Market Recap
Indian equity benchmarks ended higher on Tuesday, recouping most of Monday's losses. The BSE Sensex rose 1.9% or over 1,370 points to close above 74,000 and the NSE Nifty 50 advanced 1.8% to settle above 22,900. The gains in the benchmark Indices were led by HDFC Bank, ICICI Bank and L&T.
All the 15 sectoral gauges compiled by the NSE advanced, led by the NSE Nifty Auto Index's 2.4% rally.
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