The NSE Nifty 50 finds key resistance in the 23,800–23,830 zone, according to Sudeep Shah, head of technical and derivatives Research at SBI Securities. A sustained move above 23,830 could pave the way for an upward move towards the 24000 mark, as per the analyst.
The index might open in the green on Friday, due to positive domestic and global cues. The GIFT Nifty was trading at an uptick of 0.24% at 23,787.50 at 10:29 p.m.
The US stock market also opened in the green, amid US President Donald Trump meeting with his Chinese counterpart Xi Jinping at a key summit in China as well as strong earnings by tech major Cisco Systems Inc.
The S&P 500 rose 0.3% to 7,465.83, Dow Jones Industrial Average surged over 300 points to reclaim the 50,000 mark, while tech-heavy Nasdaq Composite opened 0.2% higher at 26,451.35.
On the downside, the 23,580–23,550 zone is expected to provide strong support to the index, as per Shah.
As long as the index sustains above 23,350, recovery-based buy-on-dips strategy may continue to remain favourable for pullback targets towards 23,770–24,000, according to Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
"However, a decisive breakdown below 23,350 could trigger fresh weakness towards the lower gap support area near 23,150," the analyst stated.
Bank Nifty
The Bank Nifty index sees an immediate hurdle at 54,700–54,800 levels, according to Shah. A sustained move above 54,800 could extend the pullback rally towards the 55,300 level, the analyst stated.
"The overall setup suggests that the index may continue to witness volatile range-bound movement with stock-specific action dominating the banking space," Dhameja said.
The analyst favoured a buy-on-dips strategy near support zones, as long as the index sustains above 53,500. He stated that the strategy might be favorable for a pullback recovery towards 54,500–55,000.
On the downside, the 53,600–53,500 zone is likely to serve as a crucial support, as per Shah.
Market Recap
The Nifty 50 ended 277 points, or 1.18%, higher at 23,689.60, while the Sensex rose 789.74 points, or 1.06%, to 75,398.72 amid F&O expiry. HDFC Bank added 69.73 points to the Nifty 50's gains, followed by Bharti Airtel at 58.47 points, ICICI Bank at 17.43 points, Cipla at 13.93 points and Eternal at 12.72 points. Infosys, TCS, HCLTech, Tech Mahindra and Coal India were among the key drags.
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