Even as the Indian stock market indices, Sensex and Nifty 50, ended higher on Tuesday, the benchmark continues to trade below its key moving averages, according to technical analysts. Following Tuesday's rebound, they highlight 23,100–23,150 as the immediate resistance level for the Nifty.
This comes as GIFT Nifty trades 0.33% lower at 22,774 points, indicating a possible negative start to the Indian equities, while US indices were trading mixed on Tuesday. The Dow Jones Industrial Average rose 0.71%, to 52,219.32 during trading session. The S&P 500 slipped 0.06%, to 7,802.70, while the Nasdaq Composite fell 0.39%, to 27,140.327 as as traders weighed corporate earnings from major banks against renewed pressure on technology stocks following a sharp decline in Asian market.
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities said, "Despite the sharp recovery, Nifty continues to trade below its key moving averages, indicating that the broader trend remains cautious. That said, momentum indicators are showing signs of stabilization. The daily RSI has moved above the 40 mark and is trading above its 9-day average, while the Stochastic oscillator has registered a bullish crossover, suggesting improving short-term momentum."
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
He added, "Going ahead, the zone of 22830-22850 will act as an immediate hurdle for the Nifty. A sustained move above 22850 could strengthen the ongoing pullback and pave the way for a rally towards the 23000 mark. On the downside, the 22580-22550 zone is likely to provide crucial support. As long as the index holds above this support band, the pullback bias is expected to remain intact."
READ | IPO Fundraising Hits Rs 94,649 Crore In September Quarter As SEBI Extends Issue-Size Relief
On Tuesday, the Sensex ended at 73,033.78 levels, up 1.54% or 1,109.10 points, while the Nifty 50 settled at 22,721.95 levels, up 358.60 points or 1.60%. Broader markets, too, ended the day higher. The Nifty Smallcap 100 index rose 0.11%, while the Nifty Midcap 100 index ended 1.06% higher. Except Nifty Pharma (down 0.01%), all sectoral indices ended higher. The Nifty IT index was the top gainer, surging 5.22%, followed by the Realty and PSU Bank indices.
Speaking on today's session, Nandish Shah, Deputy Vice President of HDFC Securities said, "Technically, "Nifty's close above the 13-day DEMA for the first time since 25 August 2026 marks an early improvement in short-term momentum. The index has also confirmed a higher top and higher bottom on a closing basis, validating a short-term bullish reversal."
On outlook, he added, "Resistance is now seen in the 23,100–23,150 zone; a decisive breakout above this band would further strengthen the bullish structure. On the downside, support has shifted higher to 22,580, followed by 22,300. As long as these levels hold, the near-term bias favors buying on dips."
READ | How A Rs 276 Stock Turned Into A Rs 20,000 Multibagger: Do You Own It?
Bank Nifty Outlook
In line with broader market, banking benchmark index Bank Nifty ended Tuesday's session on a positive note at 55,481.05, up by 563.05 points or 1.03%.
According to Sudeep Shah, "the index closed above its 20-day EMA for the first time since August 2026, indicating an improvement in short-term momentum. Additionally, the daily RSI has risen to the 48 mark and remains on an upward trajectory, reflecting strengthening momentum."
He added, "Going ahead, the 55900-56000 zone will act as an important resistance area for the index. A sustained move above 56000 could extend the ongoing pullback rally towards 56500, followed by 57100 in the short term. On the downside, the 54900-54800 zone is expected to act as a crucial support area. As long as the index holds above this support band, the near-term recovery bias is likely to remain intact."
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
