Market sentiments are likely to remain weak in the near term unless NSE Nifty 50 manages to close above 25,100, according to analysts. "On the lower side, support is seen at 24,900; if breached, the index may decline further towards 24,750," said Rupak De, senior technical analyst at LKP Securities.
The market has completed one leg of the pullback rally, and now (for Nifty/Sensex) 25,000/81,800 would be the crucial support for traders, said Shrikant Chouhan, head equity research at Kotak Securities. "Above 25,000 and 81,800, the Nifty and the Sensex could bounce back to 25,150-25,175 and 82,200-82,500, respectively."
"However, below 25,000/81,800, the indices could retest the level of 24,900/81,500. Further downside may also continue, which could drag the index to 24,850/81,300," he said.
The index has tested the higher end of the resistance zone, i.e., 25,100; a firm close above the same is a must to confirm a trend continuation, said Aditya Gaggar, director of Progressive Share Brokers Pvt. "On the downside, a level of 24,850 will act as immediate support."
Market Recap
The benchmark stock indices extended their rally to close higher for the second session in a row on Tuesday, led by gains in the IT sector.
The NSE Nifty 50 closed 104.70 points, or 0.42% higher, at 25,041.10, while the S&P BSE Sensex ended higher by 361.75 points, or 0.44%, at 81,921.29.
Nifty, Sensex Close Higher For Second Day Led By Infosys, Airtel: Market Wrap
Money Market
The Indian rupee closed weaker against the US dollar on Tuesday amid expectations of a continued RBI intervention. Market participants are waiting on the sidelines for the release of US inflation data due Wednesday for insights on the scale of the Federal Reserve’s anticipated interest rate cut.
The rupee closed three paise weaker at Rs 83.98 against the US dollar, according to Bloomberg data. The domestic currency had closed at Rs 83.95 on Monday.
Rupee Weakens Against Dollar With US Inflation Data In Focus. Read more on Markets by NDTV Profit.