The NSE Nifty 50 finds key resistance in the 23,820–23,850 zone, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
The benchmark equity index is expected open higher on Friday, with GIFT Nifty futures trading 0.8% higher at 23,704 at 11:32 pm.
However, there might be pressure due to higher oil prices, Brent Crude futures up 1.62% at 106.72 at 10:18 p.m.
The Wall Street was trading mixed, with the tech-heavy Nasdaq Composite eding in the green at 01:00 pm EST (11:30 pm IST) despite the oil market jitters.
For the Nifty 50, a sustained move above 23,850 could pave the way for an upward move towards the 24,000 mark, Shah stated.
On the downside, the analyst sees the 23,550–23,500 zone as crucial support.
According to Dhupesh Dhameja, derivatives research analyst at SAMCO Securities, the market structure suggests that Nifty is currently in a time-wise corrective phase.
"Going ahead, a decisive close above the 23,800 zone could trigger short covering and improve sentiment toward 24,000–24,250 levels, while failure to hold above the lower consolidation base may once again invite volatility in the coming sessions," Dhameja said.
Bank Nifty
The 53,900–54,000 zone is likely to act as an immediate resistance according to Sudeep Shah. On the downside, the 53,100–53,000 zone is expected to provide crucial support, he added.
"A decisive break below the 53,000 level could further intensify selling pressure, dragging the index towards the next key support at around 52,400," the analyst said.
Going ahead, a decisive close above 54,000–54,200 could trigger short covering and improve momentum toward higher levels, as per Dhupesh Dhameja.
"Failure to hold above the 53,000 support zone may once again intensify selling pressure in the banking index," Dhameja stated.
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Market Recap
Indian benchmark indices closed lower after giving up sharp early gains in a volatile trading session. Nifty 50 ended down 0.02% at 23,654.70, while Sensex closed 0.18% lower at 75,183.36. Intraday, Nifty fell as much as 0.3% to 23,596 after rising as much as 0.9% to 23,859 earlier in the day. Sensex dropped as much as 321 points to 74,996 after touching an intraday high of 75,945 in morning trade.
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