Indian equities ended higher on Wednesday, as easing external pressures and improving domestic growth indicators supported broad-based buying across sectors. The focus now shifts to key technical levels as traders assess whether the recent recovery can extend further.
According to Sudeep Shah, Vice President – Technical & Derivatives Research at SBI Securities, the Nifty could find immediate resistance in the 23,600–23,620 zone.
“Going forward, the 23,300–23,270 zone could act as a crucial support area. A sustained breach below 23,270 could trigger fresh selling pressure towards 23,150 levels. On the upside, 23,600–23,620 is likely to act as an immediate resistance zone. A sustained move above 23,620 could trigger potential short covering and extend the pullback towards 23,750 levels,” Shah said.
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Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the index continues to display a non-directional setup.
“On daily charts, it has formed a small bullish candle, and on intraday, it is holding a range-bound formation. We believe that the current market texture is non-directional; perhaps traders are waiting for either side breakout,” Chouhan said.
The commentary suggests that the Nifty could remain range-bound until it decisively breaks either the key resistance or support levels. Traders are therefore likely to track the 23,600–23,620 zone on the upside and 23,300–23,270 on the downside for signs of the next directional move.
Nifty Bank Outlook
Bank Nifty ended higher on Wednesday, recovering losses from the previous session. After opening on a steady note, the index formed a series of higher highs and higher lows towards the 56,700–56,800 resistance zone, while successfully holding above 56,500 during the session.
Ponmudi R, CEO of Enrich Money, said 56,700–56,800 remains the immediate resistance zone for Bank Nifty. A decisive and sustained move above 57,000 could provide further strength to the near-term outlook. On the downside, 56,100–56,000 continues to act as immediate support. A break below this zone could intensify selling pressure and drag the index towards the next support area at 55,800–55,700.
Momentum indicators have also turned cautiously constructive, with the RSI near 50 and trading well above its average line, indicating an improvement in momentum.
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