The NSE Nifty 50 is steadily approaching the critical resistance of the bearish gap situated around 24,850–24,950, which would be crucial to monitor amid the current momentum, according to analysts.
A gradual upshift in the support base is evident, with 24,650–24,600 likely to provide a cushion against any potential setbacks, while the sacrosanct support lies around the pivotal zone of 24,500, according to Osho Krishan, senior analyst at Angel One Ltd.
Krishan suggested investors keep a close tab on the Nifty Bank, as its participation would play a crucial role in setting up momentum in the market. "One must stay vigilant with global developments and act according to the levels mentioned."
If the benchmark indices are trading above 24,650/80,600, the bullish texture is likely to continue on the higher side, and the market can rally up to 24,850–24,900/81,300–81,600, according to Shrikant Chouhan, head of equity research at Kotak Securities. "On the flip side, dismissal of 24,650/80,600 may trigger one quick intraday correction till 20-day simple moving average or 24,525–24,500/80,100–79,800."
"For the index, the view remains the same, that is, heading towards 24,870 (range breakout target), while the support level shifted higher to 24,640," Aditya Gaggar, director of Progressive Share Brokers Pvt., said.
Global markets exhibited a mildly cautious tone ahead of the release of the Federal Open Market Committee's minutes later in the day, according to Vinod Nair, head of research at Geojit Financial Services. "Currently, the expectation of a rate cut remains high, given the fall in US inflation and moderation in overall growth."
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Market Recap
The benchmark stock indices ended Wednesday’s choppy session on a positive note, with the NSE Nifty 50 recording a five-session winning streak as ITC Ltd. and Bharti Airtel Ltd. gained.
The NSE Nifty 50 settled at 71.35 points, or 0.29% higher at 24,770.20, and the S&P BSE Sensex ended at 102.44 points or 0.13% higher at 80,905.30.
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Money Market
The Indian rupee closed weaker against the US dollar on Wednesday, ahead of Federal Reserve Chair Jerome Powell’s speech.
The rupee depreciated 14 paise to close at 83.93 against the greenback, according to Bloomberg data. It had closed at 83.79 on Tuesday.
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