The Indian benchmark indices ended on a merry note after recovering from budget day’s losses on Monday. However, analysts expect Nifty’s volatility to remain heightened.
“Index formed a sizable bullish candle which remained enclosed inside previous session price range highlight pullback after previous session sharp decline,” stated Bajaj Broking Research.
Short-term resistance for the index lies at last week’s high around 25,400-25,500. While on the downside, key support will be near “panic low of Budget session” at 24,500-24,600 levels, Bajaj Broking added.
Siddhartha Khemka, head of research-wealth management at Motilal Oswal Financial Services, holds that Nifty’s momentum could remain constructive in the near future.
“Going ahead, market momentum may stay constructive in the near term, while global cues and earnings-related developments will continue to guide stock-specific moves,” he said.
Nifty Bank
Analysts expect the Nifty Bank index to remain range-bound in the coming sessions.
“Bank Nifty formed a small, bodied candle with a long upper shadow, which remained contained inside previous session price range signaling consolidation amid stock specific action. In the coming sessions, the index is likely to consolidate within the 58,500–60,400 range,” said Bajaj Broking Research.
Key resistance for the bulls lie at the 60,400 level, while immediate support is seen near 59,000-58,800 and key support is placed at 58,000–57,500.
Market Recap
Indian equities opened in the red but gave up losses to close in green extending snapping its two-day fall. Intraday, both Nifty and Sensex fell nearly 0.60% but gained over 1%. Nifty ended 262.95 points or 1.06% higher at 25,088.40. Sensex ended 909.11 points or 1.13% higher at 81,632.05.
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