As the markets head into Thursday's session, all eyes will be on whether the Nifty can sustain above the Wednesday’s high of 25,130, a threshold that could dictate the market's direction.
US-chipmaker Nvidia’s earnings are expected around 10 p.m. IST, and traders await to see whether the AI-induced euphoria has run its course or if the bull market has any sustenance left. The Indian market is expected to take cues from how Wall Street performs today, given the massive influence that Nvidia has on broader indexes.
Analysts caution that a failure to break this resistance may trigger short-term consolidation or profit-taking, as indicated by the spinning top candlestick pattern. Traders might consider booking profits if the index remains below this level, said Hrishikesh Yedve of Asit C. Mehta Investment Intermediates. On the other hand, a sustained move above 25,130 could reignite the rally towards 25,300-25,500, with immediate support seen near the 24,820 mark.
The Nifty's recent performance shows signs of losing momentum, as shown by a long-legged doji candlestick pattern and a potential bearish divergence in the relative strength index, noted Aditya Gaggar of Progressive Shares. "A break below 24,970 could see the index sliding further to 24,840, while on the flip side, a firm close with a bullish candle above 25,100 is a must to continue its northward journey," he added.
"Despite reaching new all-time highs on Wednesday, the Nifty failed to sustain its gains and closed near its opening range, signalling indecision in the market," said Avdhut Bagkar of StoxBox.
However, profit-booking in the late trading session suggests caution. Nifty's struggle to maintain its upward momentum comes amid weak global sentiments, said Hashim Yacoobali of South Gujarat Shares and Sharebrokers. Investors should brace for potential volatility as the index tests these critical levels, he warned.
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Market Recap
The benchmark equity indices continued their uptrend on Wednesday, with the NSE Nifty 50 recording its best gaining streak since October 2020 to close at its lifetime high and the S&P BSE Sensex extending gains for the seventh consecutive session.
The Nifty closed 34.6 points, or 0.14%, higher at 25,052.35 and the Sensex ended 73.80 points, or 0.09%, higher at 81,785.56.
During the day, the Nifty rose as much as 0.45% to its highest level of 25,129.60 and the Sensex jumped 0.40% to 82,039.65, 90 points shy of its lifetime high.
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Money Market
The Indian rupee closed weaker against the US dollar on Wednesday due to month-end dollar demand from importers. However, easing oil prices and continued intervention by the Reserve Bank of India limited the losses.
The local currency depreciated by 4 paise to close at Rs 83.96 and opened at Rs 83.95, according to Bloomberg data. It had closed at Rs 83.92 on Tuesday.
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