The Indian stock markets surged to an all-time high on Thursday but pared gains to settle flat at close. Analysts expect the bullish momentum to continue for the short-term.
"Nifty formed a small-bodied candle with shadows in either direction, signalling consolidation amid stock-specific action after previous session strong up move," Bajaj Broking said.
Even though the breakout was muted, the short-term trend remains positive, with the index trading comfortably above all major moving averages, LKP Securities Senior Technical Analyst Rupak De said.
Key resistance level for the index is between 26,350 and 26,400, while on the downside, support lies at 26,000 and 26,100 levels, according to Kotak Securities Head Equity Research Shrikant Chouhan. "However, below 26,000/85,200, the sentiment could change. Below these levels, traders may prefer to exit their long positions," Chouhan added.
Analysts at Bajaj Broking Research expect the index to maintain overall positive bias going ahead and "gradually head towards 26,500 and then towards 26,800 levels in the coming weeks".
Bank Nifty Outlook
The Bank Nifty is expected to maintain a positive up move in the coming weeks, as per analysts.
"Bank Nifty formed a small bullish candlestick pattern with a higher high and a higher low, signalling continuation of the positive momentum. The index in the process rallied to a fresh all-time high of 59,866," Bajaj Broking Research said.
Market Recap
The Indian stock market on Thursday settled flat after reaching an intra-day all-time high after 289 trading sessions. Nifty closed 0.04% higher in the green at 26,215.55.
Bharti Airtel, ICICI Bank and RIL contributed the most to Nifty Rally. Sensex, Nifty PSU Bank, Nifty Bank, Auto all hit an all-time high.
Nifty pared most gains and fell over 100 points from the day's high at close but managed to end above the 26,200 mark. Nifty Media emerged as the top gaining sector for the day with TV18 Broadcast and Saregama contributing the most gains in Nifty Media.
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