Analysts forecast that the NSE Nifty 50's uptrend would likely continue. The benchmark index settled 0.37% or 93.35 points higher at 25423.60, extending its rally into the third day on Thursday.
"The index has formed a high wave candle with a long lower shadow, signalling buying demand at lower levels, highlighting extension of the up move. The index continues to maintain higher high and higher low in daily chart," stated Bajaj Broking Research.
The immediate resistance for the index lies at 25,500, while on the downside, support is placed near 25,300, according to Shrikant Chouhan, head of equity research at Kotak Securities.
"We are of the view that as long as the market trades above this level, the bullish sentiment is likely to continue," he added. If Nifty breaks out beyond the 25,500 mark, it could push the market up to 25,600–25,625.
"Nifty has recently generated a bullish crossover of 20- and 50-days EMA, highlighting positive bias from short-term perspective," said Bajaj Broking Research.
Nifty comfortably held above the 25,400 mark, supported by firm global cues as the Federal Reserve lowered interest rates by 0.25% on Wednesday for the first time in nine months, as per Bajaj Broking Research.
Bank Nifty Outlook
"The Bank Nifty has formed a high wave candle with a higher high and higher low signaling extension of the pullback for the 12th consecutive sessions," stated Bajaj Broking Research.
The research firm expects the index to maintain positive bias and head higher towards 56,000-56150 levels in the coming sessions.
"On the downside, immediate support is placed at 54,800 levels being the 20- and 100-days EMA. While key support is placed at 54,000 levels being the confluence of the last week low and key retracement of the current pullback", Bajaj Broking remarked.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
