Benchmark indices NSE Nifty 50 and BSE Sensex ended Wednesday’s session in the red. The NSE Nifty 50 fell 99.45 points or 0.53% to 18,534.40 and BSE Sensex plunged 346.89 points or 0.55% to 62,622.24. In sectoral indices, Bank Nifty tanked 308.20 points or 0.69% to 44,128.15, Nifty Metal plunged 46.50 points or 0.78% to 5,890.05 and Nifty Oil & Gas tumbled 94.75 points or 1.26% to 7,432.15 while Nifty Pharma rose 73.70 points or 0.58% to 12,678.40 and Nifty Realty jumped 3.60 points or 0.76% to 478.80. The top gainers on Nifty 50 were Tech Mahindra, Bharti Airtel, Kotak Bank, SBI Life and Sun Pharma while the losers were ONGC, NTPC, Axis Bank, Reliance Industries Ltd (RIL) and HDFC.
“As indicated by multiple economic data points, the Indian economy is presently experiencing a robust recovery, leading to an upward trend in domestic equity markets. However, the rally is being hindered at times due to negative signals from global peers, as observed today. Concerns about a recession and potential interest rate hikes in Western markets are impacting the domestic market but it is nevertheless maintaining the outperformance,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where are NSE Nifty 50, Bank Nifty headed?
Nifty 50 support at 18460–18400; resistance at 18660–18700
“On the daily charts, we can observe that the Nifty has filled the gap area 18500–18580 formed on 29th May and held on to that support zone. We believe that the Nifty is in the process of retesting the breakout it provided last week from the zone of 18000–18400. The hourly momentum indicator has reached the equilibrium line indicating that the consolidation may have matured, and it can start a new cycle on the upside. Overall, we continue to maintain our positive outlook on the index for a target of 18800 from a short-term perspective. In terms of levels, 18460–18400 shall act as the crucial support zone while the hurdle zone is placed at 18660–18700,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty support at 43500; resistance at 44500
“Bank Nifty index experienced selling pressure from bears during the first half of the trading session. However, buying activity was witnessed in the last hour of trading, driven by MSCI index rebalancing. The index has support at 43500, indicating a level where buyers have shown interest and the potential for a bounce-back. On the other hand, resistance is seen at 44500, which is a significant level where both put and call writing is visible. This suggests that there may be a considerable number of traders with bearish and bullish expectations around this price level,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.