The NSE Nifty 50 has successfully snapped its four-day losing streak and is currently facing immediate resistance at 23,530-23,550 levels, according to Sudeep Shah, head of technical and derivatives research at SBI Securities. The index reclaimed the crucial 23,400 level during Wednesday's session, marking a significant recovery from the recent decline. As reported by SAMCO Securities, the index remains below the 10-Double Exponential Moving Average zone of 23,800-23,900, which continues to influence trading patterns and suggests volatile conditions may persist. The GIFT Nifty futures were trading 0.3% higher at 23,490 at 9:40 p.m, signalling a likely positive start for Thursday's session.
The immediate support for Nifty is identified in the 23,270-23,250 zone, with any sustainable move below this level potentially extending weakness towards 23,100, followed by 22,950 in the short term, as noted by Shah. According to Dhupesh Dhameja, derivatives research analyst at SAMCO Securities, sustained trading below 23,300 could intensify downside pressure towards the psychological 23,000 mark. The crucial support for Nifty was identified in the 23,270-23,250 range, with any sustainable move below this zone potentially resulting in Nifty extending its weakness towards the mentioned levels. The market ended the session with marginal gains, following the bloodbath seen on Monday and Tuesday.
Domestic institutional investors played a crucial role in the markets reversing the losing trend, as they net purchased equities worth ₹5,523.51 crore on Wednesday, according to market reports. Global cues remained mixed, with the US stock market moving in split directions - the tech-heavy Nasdaq edged higher owing to the AI frenzy, while the Dow Jones Industrial Average edged lower after soaring wholesale inflation made investors jittery. Asian stocks declined for a second straight session as a record-setting rally in semiconductor shares lost momentum and stronger-than-expected US inflation reinforced bets that the Federal Reserve may have to raise interest rates next year.
According to Shah's analysis, Bank Nifty faces immediate support in the 53,100-53,000 zone, with any sustainable move below this level potentially extending weakness towards 52,600, followed by 52,300 in the short term. As long as the index trades below the 10-DEMA zone near 54,700, volatile and sell-on-rise conditions are likely to persist. The immediate resistance for Bank Nifty is placed in the 53,800-53,900 zone, as per Shah's technical assessment. As long as the index trades below the 10-DEMA zone near 54,700, volatile and sell-on-rise conditions are likely to persist in the near term, according to Dhupesh Dhameja.
The Nifty IT sector faces significant technical challenges, with analysts warning of potential further weakness. As per technical analysis, structure is weak and bounce is being sold, with Nifty IT itself under weak structure. Until it holds above Rs 10,500, it can drift down towards Rs 9,500 and lower levels, according to market experts. This assessment comes as the IT sector continues to face pressure from global uncertainties and domestic market volatility.
