- Indian equity benchmarks rose supported by broad-based buying and easing crude prices
- Nifty faces resistance at 23,300–23,400 and support at 23,200 and 23,100–23,070 zones
- Momentum remains weak with RSI near 34, indicating subdued market strength
Indian equity benchmarks ended higher in the previous session, with broad-based buying supporting a recovery from recent weakness. Sentiment also benefited from some moderation in crude oil prices, although energy costs remained elevated.
According to Ponmudi R, CEO of Enrich Money, the price action indicates that buying interest has emerged at lower levels, while selling pressure continues to restrict the recovery near key resistance levels.
“On the upside, the 23,300–23,400 zone remains the immediate resistance band. A sustained breakout and close above 23,400 would strengthen the recovery structure and could pave the way towards the 23,500–23,600 region,” Ponmudi said.
On the downside, 23,200 remains the immediate support for the Nifty, followed by the crucial 23,100–23,070 zone.
Momentum indicators remain subdued, with the relative strength index hovering near 34, reflecting weak momentum.
The short-term market texture remains weak but oversold, according to Amol Athawale, vice president – technical research at Kotak Securities. "We are of the view that the short-term market texture is weak, but oversold, hence a strong possibility of a quick pullback rally from the current levels is not ruled out."
Bank Nifty Outlook
Bank Nifty formed a positive candle with minor wicks and continued to attract buying interest at lower levels. The banking benchmark closed 0.54% higher, indicating improving recovery interest.
However, sustained follow-up buying will be required to extend the pullback. Failure to sustain the recovery could keep the prevailing bearish bias intact, according to Sudeep Shah, head – technical and derivatives research at SBI Securities.
On the downside, the 55,800–55,700 zone is likely to act as a crucial support area. A sustained breach below 55,700 could drag Bank Nifty towards 55,200. On the upside, 56,800–56,900 is likely to act as the immediate hurdle. A sustained move above 56,900 could extend the pullback towards 57,300, Shah said.
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