Indian equity indices are trading in a range-bound manner in Wednesday’s session. The NSE Nifty 50 surged 140 points or 0.56% to 25,000. The BSE Sensex rose 450 points or 0.56% to 81,550.
On the same verge, Bank Nifty opened 276 points or 0.51% higher at 54,492. Following the benchmarks, the small and midcap stocks opened the day higher. The Nifty Midcap rose 280 points or 0.49% to open at 57,744.
“We believe the market is currently experiencing positive consolidation. For day traders, the main support zone is around 24,800. As long as the market continues to trade above these levels, the bullish trend is likely to continue. On the upside, 24,900 would act as a crucial resistance zone. A successful breakout above 25,000 could take the market to 25,100-25,150. Conversely, below 24,800, the uptrend will weaken,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Another technical analyst, Vipin Shandilya, who is Assistant Vice President of Technical and Derivatives Research at Globe Capital, said that the Nifty index is trading in a congestion range, specifically in the 24,450-25,100 spot zone. A break from either side of the said range will set the tone for the next short-term directional move in that direction. Intraday supports are placed around 24,750 spot levels, and resistance around 24,920-25,000 spot zone. Lack of overall participation, call writing on every rise, along with sustained lower values of FIIs’ long-short ratio, is a cause of concern in the immediate near term.
“A major positive for the market today comes from President Trump’s initiative to improve India-US relations and PM Modi’s positive response to the same. However, based on experience, the market should judge President Trump by his actions, not his words,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
“Investors should understand that the major challenge that the market is facing now is the high valuations, particularly in the broader market, which will constrain any potential rally. India is hugely underperforming other markets now. For Instance, while Hang Seng and Kospi delivered 51 % and 31% returns during the last one year, Nifty delivered -0.69 % return: huge underperformance,” added Vijayakumar.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Adani Ports, Kotak Mahindra Bank, L&T, Jio Financial Services, and Adani Enterprises. On the flip side, the key laggards in the Nifty 50 pack included Sun Pharma, Mahindra & Mahindra, and Maruti Suzuki.
Major movers on Wednesday
The stocks that remained under pressure included Larsen & Toubro, Infosys, Kotak Mahindra Bank, HDFC Bank, and TCS, which were the major movers in the morning trade.