Analysts predict a strong up-move of the benchmark Nifty will continue. The Nifty 50 on Wednesday closed 0.36% or 91.15 points higher at 25,330.25.
"The index has formed a bull candle with a higher high and higher low and a bullish gap below its base (25,240-25,270), signaling extension of the up move. Nifty has recently generated a bullish crossover of 20 and 50-day EMA, highlighting positive bias," Bajaj Broking Research stated.
The benchmark will now find resistance at 25,400-25,500 levels, as per Rupak De, senior technical analyst at LKP Securities. On the downside, support is placed at 24,900.
"Market sentiment has improved significantly, with the panic index slipping by 10 during the day, reflecting growing investor confidence. Going forward, the trend is likely to remain positive," De added.
"The Nifty50 held above the 25,300 mark, reinforcing psychological strength. The advance suggests investor comfort above this level, with upside momentum", stated Hardik Matalia, derivative analyst at Choice Broking.
All analysts are in consensus of the fact that the positive sentiment was enforced amid progress in India-US trade negotiations and expectations of a potential interest rate cut by the US Federal Reserve later in the day.
"One of the key drivers of the rally was renewed hope for an early trade agreement between India and the United States. Officials from both sides described the latest round of talks as “constructive” and “forward-looking,” which boosted confidence in the possibility of a favorable outcome", stated Bajaj Broking.
Bank Nifty Outlook
"The Bank Nifty has formed a strong bull candle with a higher high and higher low signaling extension of the pullback for the 11th consecutive sessions," said Bajaj Broking Research.
The research firm added that key support is placed at 54,000 levels and immediate support is placed at 54,800 levels. While on the upside, resistance is placed at 56,000-56,150 levels for the coming sessions.
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