The Nifty 50 staged a sharp recovery on Wednesday, gaining 374 points to close at 22,997, even as weak global cues and concerns over inflation weighed on investor sentiment. The benchmark index rose 1.66%, while the Sensex advanced 2.10% to settle at 74,315. For the trading session on Friday, the Nifty faces immediate resistance in the 23,150-23,170 range, with technical analysts watching whether the recent rebound can sustain above this hurdle.
Sunny Agrawal, Head of Fundamental Research at SBI Securities, said the market rally came despite weak global cues, as higher-than-expected US inflation data revived concerns about the possibility of further monetary tightening by the US Federal Reserve. Domestically, softer crude oil prices and a stronger rupee offered some support to equities, although Brent crude remained elevated at around $104-$105 per barrel.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, identified 22,830-22,850 as the immediate support zone for the Nifty. A sustained move below this range could trigger selling pressure and pull the index towards 22,680, he said. On the upside, the 23,150-23,170 zone is likely to act as an immediate resistance. A decisive breakout above this range could extend the recovery towards 23,300, provided buying momentum remains strong.
The next session will therefore be crucial in determining whether the recent rally can gather further momentum or encounters renewed selling pressure near the resistance zone. Despite the sharp rebound, market participants remain cautious about the sustainability of the recovery.
Ankur Punj, Managing Director at Equirus Wealth, said the underlying market sentiment remained cautious to bearish. Uncertainty in West Asia surrounding the US-Iran conflict, volatility in global crude oil prices and continued selling by foreign institutional investors (FIIs) in domestic equities are likely to keep investors on edge, he said.
Bank Nifty Outlook
The Bank Nifty ended higher after opening on a firm footing, sustaining its position above the 20-day exponential moving average (EMA). The index extended its recovery towards the 56,000 mark, although gains were capped by the 56,000-56,100 resistance zone. Ponmudi R, CEO of Enrich Money, said this resistance band also coincides with the 50-day EMA, making it an important hurdle for the banking index.
A sustained move above 56,000-56,100 could strengthen the recovery and open the way towards 56,500-56,600. On the downside, immediate support is placed at 55,600-55,500. A break below this zone could expose the index to further weakness towards 55,200-55,000.
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