The NSE Nifty 50 finds resistance at the 23,900-23,950 levels after the index extended its rally for the third straight trading session, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
"Going ahead, the immediate resistance for Nifty is placed in the 23,900-23,950 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24,100, followed by 24,300 in the short term," Shah said.
On the downside, the zone of 23,600–23,550 zone is likely to act as a strong support, according to the analyst.
The index formed a bullish candle with a higher high and a higher low, indicating a continuation of the pullback for the third session in a row after the recent sharp decline of the last three weeks, according to Bajaj Broking's market research.
"Going forward, index sustaining above Wednesday's low of 23,618 would confirm further extension of the pullback towards the 24,000 and 24,300 levels in the coming sessions being the confluence of the last week high,38.2% retracement of the entire decline and 20 days extended moving average," the brokerage said.
Bank Nifty
The Bank Nifty finds immediate resistance placed in the 55,600–55,700 zone, according to Shah. "Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 56,000, followed by 56,300 in the short term. On the downside, the zone of 55,000–54,900 zone is likely to act as a strong support," the analyst said.
The index formed a bullish candle with a higher high and a higher low, indicating an extension of the pullback for the third session in a row following the recent sharp decline, according to Bajaj Broking Research. "Volatility is expected to remain elevated in the near term, driven by uncertain global cues and rising geopolitical tensions, which continue to weigh on overall market sentiment," the brokerage said.
Market Recap
Indian equity benchmarks extended their rally for the third consecutive trading session, its longest stretch of losing streak in a month. The BSE Sensex closed over 600 points higher to end above 76,700. The NSE Nifty 50 ended 0.8% higher to settle at 23,777. Intraday, the 30-stock index had risen as much as 1.2% or 929 points and the 20-share index rose as much as 1.2%.
In the currency markets, the rupee ended at a record-closing low of 92.63 against the US dollar.
Meanwhile, crude oil prices fell on reports of US inventories rise. Brent is down $1.15, or 1.11%, at $102.27 a barrel, while WTI has dropped $1.54, or 1.6%, to $94.67. US crude stocks increased by 6.56 million barrels for the week ended March 13, Reuters reported on Wednesday, quoting market sources.
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