The NSE Nifty 50 finds immediate resistance at 23,530-23,550 levels, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
The GIFT Nifty futures were trading 0.3% higher at 23,490 at 9:40 p.m, signalling a likely positive start for the Dalal Street on Thursday.
Domestic institutional investors played a crucial role in the markets reversing the losing trend, as they net purchased equities worth Rs 5,523.51 crore on Wednesday.
Global cues were mixed, with the US stock market moving in a split direction. The tech-heavy Nasdaq edged higher owing to the AI frenzy, whereas the Dow Jones Industrial Average edged lower after soaring wholesale inflation made investors jittery.
ALSO READ: Nasdaq Jumps As AI Frenzy Stays Strong; Dow Slides On Wholesale Inflation Surge
As long as Nifty 50 remains below the 10-Double Exponential Moving Average zone of 23,800–23,900, volatile and sell-on-rise conditions are likely to dominate, while sustained trading below 23,300 could intensify downside pressure towards the psychological 23,000 mark, according to Dhupesh Dhameja, derivatives research analyst, SAMCO Securities.
The crucial support for Nifty was identified in the 23,270-23,250 zone.
"Any sustainable move below this zone could result in Nifty extending its weakness towards 23,100, followed by 22,950 in the short term," Shah said.
Bank Nifty
Analyst Sudeep Shah identified the immediate support for Bank Nifty is placed in the 53,100-53,000 zone.
"Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 52,600, followed by 52,300 in the short term," Shah said.
As long as the index trades below the 10-DEMA zone near 54,700, volatile and sell-on-rise conditions are likely to persist in the near term, according to Dhameja.
On the upside, the immediate resistance for the Index is placed in the 53800-53900 zone, as per Shah.
Market Recap
The market ended the session with marginal gains, following the bloodbath seen on Monday and Tuesday. Nifty reclaimed 23,400 by closing while Sensex closed 50 points higher as markets bounce back.
Asian stocks declined for a second straight session on Wednesday as a record-setting rally in semiconductor shares lost momentum and stronger-than-expected US inflation reinforced bets that the Federal Reserve may have to raise interest rates next year.
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