Wednesday's market action will largely depend on whether the Nifty can overcome the critical resistance zone of 25,080-25,100, a level that has repeatedly capped the index's upward momentum, say analysts.
If the index sustains above this range, it could trigger a rally towards 25,300-25,500, according to them. "The index found resistance near its previous record high of 25,078 and witnessed profit booking, resulting in the formation of a small red candle on the daily chart," said Hrishikesh Yedve, AVP technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd.
The key indices’ current position reflects a thin trading range, according to Hashim Yacoobali of South Gujarat Shares And Sharebrokers Ltd. While Nifty managed to hold above the psychological 25,000 mark, it struggled to sustain above the 25,052-25,099 resistance zone, he noted.
"The index has made a doji candlestick pattern near the record levels, indicating indecisiveness between the bulls and bears," said Aditya Gaggar, director of Progressive Share Brokers Pvt.
Tuesday's muted market movement was influenced by global factors such as the ongoing Middle East conflict and anticipation of Nvidia's earnings report, which kept the Nifty confined within a 99-point range, said Avdhut Bagkar, technical and derivatives analyst at StoxBox. This narrow range and the inability to close above key levels suggest that investors should brace for potential volatility in the coming sessions, he added.
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Market Recap
The benchmark stock indices ended a lacklustre session on Tuesday with little change as gains in Infosys Ltd. and Larsen & Toubro Ltd. supported the indices, while losses in Reliance Industries Ltd. and Hindustan Unilever Ltd. weighed on the indices.
The NSE Nifty 50 ended 7.15 points, or 0.03% higher at 25,017.75, and the S&P BSE Sensex closed 13.65 points, or 0.02% up at 81,711.76.
Intraday, Nifty rose 0.25% to 25,073.10 and Sensex was 0.27% higher at 81,919.11. Nifty moved in the range of 99.45 points and Sensex moved in a 318.6-point range.
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Money Market
The Indian rupee closed weaker against the US dollar on Tuesday amid falling crude prices and an expected weightage increase in the MSCI Index.
The local currency depreciated by 2 paise to close at 83.92, according to Bloomberg data. It had closed at 83.90 on Friday.
The dollar index, which tracks its performance against a basket of 10 leading global currencies, opened flat and was trading 0.04% lower at 100.82 at 3:40 p.m. IST.
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