Stock Market Today, Nifty, Bank Nifty: Nifty and Sensex may trade higher on Wednesday amid positive global market cues as investors await US Federal Reserve’s rate hike decision which will be announced late evening today. The Nifty futures on the Singapore Exchange (SGX) were trading 13 pts or 0.08% higher at 17,157.00 in the early morning trade. Asian markets were trading in green with China’s Shanghai Composite index rising 0.53%, Hong Kong’s Hang Seng climbing 2.26%, South Korea’s KOSPI advanced 1.09% and Japan’s Nikkei 225 surged 1.93%. The US market ended the overnight session in positive territory with Dow Jones Industrial Average rising 0.98%, S&P 500 climbing 1.30% and the tech-heavy Nasdaq advancing 1.58%. On Tuesday, NSE Nifty 50 rose 119.10 pts or 0.70% to 17,107.50 and BSE Sensex surged 445.73 pts or 0.77% to 58,074.68. In the sectoral indices, Bank Nifty climbed 532.75 pts or 1.35% to 39,894.70, Nifty Financial Services climbed 1.46%, and Nifty PSU Bank rose 1.65% while Nifty IT fell 0.98%, Nifty FMCG dipped 0.66%.
Nifty first support at 17000 and then 16830
“Nifty is forming a volatile base around the 16800-17150 area in the last few sessions. Nifty short covering is expected above 17145. First support is placed at 17000 and then 16830 while resistance is placed at 17145 and 17300,” said Rahul Sharma, JM Financial Services Ltd.
“Nifty support is set at 16850, indicating that the market has a solid foundation to withstand any potential downside risk. The Nifty, on the other hand, has a resistance level of 17250, indicating that the market may encounter some resistance to further upward movement at this level,” said Ameya Ranadive CMT, CFTe, Equity Research Analyst at Choice Broking.
Nifty above 17200 may induce rally towards 17450-17500
“Nifty has been consolidating for the past few days, indicating indecisiveness. The trend remained negative for the short term as the index has been sustaining below the critical moving average on the daily chart. The RSI on the daily chart has narrowed down its bearish crossover. The trend is likely to remain sideways as long as it remains within the bands of 16950-17200. A decisive move above 17200 may induce a rally towards 17450-17500. While a decisive fall below 16950 may trigger a steeper correction in the market,” said Rupak De, Senior Technical Analyst at LKP Securities.
Nifty to target zone of 17150 -17200
“On the upside we expect the Nifty to target the zone of 17150 -17200 which coincides with the previous swing high and the 38.2% Fibonacci retracement level of the fall from 17800 – 16828. The immediate support stands at the lower end of the downward-sloping channel 16800 – 16850,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Investors eyeing US Fed meeting
“While the market is eyeing the Fed meeting on the interest rates, risk flow is seen returning. Nifty bulls will aim to hunt for another positive session after rebound witnessed from lower levels, with confirmation of strength only above the 200-DMA at the 17456 mark,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Bank Nifty outlook
Bank Nifty first support at 39649 and then 39250
Bank Nifty has led the recovery closing above its 200 SMA and almost conquering its 200 DEMA. Bank Nifty short covering is expected above 40000. First support is placed at 39649 and then 39250 while resistance is placed at 40288 and then 40529, according to Rahul Sharma, JM Financial Services Ltd.
Bank Nifty resistance levels are 40050 and 40250
“Bank Nifty resistance levels are 40050 and 40250, which means that if the banking sector continues to perform well, the index could potentially breach these levels in the coming days. The Bank Nifty’s support level has been established at 38900,” said Ameya Ranadive CMT, CFTe, Equity Research Analyst at Choice Broking.
Bank Nifty’s short-term trend remains positive
“Bank Nifty has given a consolidation breakout on the daily chart, suggesting a rise in optimism. The momentum oscillator has entered a bullish crossover. Over the short term, the trend in the banking space is likely to remain positive as long as it remains above 39500. On the higher end, immediate resistance is placed at 40000. A move above 40000 may induce a rally towards 41000,” said Rupak De, Senior Technical Analyst at LKP Securities.