Indian equities ended marginally higher on Wednesday with Sensex rising 152 points to close at 78,581 and Nifty 50 gaining around 10 points to end at 24,625, as reported by The Economic Times. The market recorded sharp upswings and downswings amid confusion surrounding the newly introduced closing auction session (CAS). India VIX, which measures market volatility, dropped 1.5% to 12, indicating reduced uncertainty in the market. The session was marked by a rise in crude prices following renewed concerns over escalating tensions in West Asia, which led markets to gradually move lower despite opening strongly.
According to CNBC TV18, Nagarak Shetti of HDFC Securities expects the Nifty to remain range-bound in the near term, with resistance at 24,800 and immediate support placed in the 24,400-24,300 zone. As per The Economic Times, Rupak De of LKP Securities notes that the Nifty remained range-bound throughout the session as traders largely stayed on the sidelines following the interest rate announcement and economic projections release. On the downside, 24,500 acted as a key support level, while the index failed to sustain above 24,700 during the day. The market is attempting to establish a new support base around 24,400-24,500, with a decisive move above 24,800 potentially paving the way for the benchmark index to extend its rally towards the 25,000 mark, provided banking stocks also join the advance.
As reported by The Economic Times, the August derivatives series beginning with the Nifty near the crucial 24,400-24,600 resistance zone reveals that market participants are gradually shifting their bullish expectations higher. According to The Economic Times, the highest Put OI remains at 24,000, but the most aggressive fresh put writing has emerged at near OTM strikes like 24,400, 24,450 and slightly far OTM strikes like 24,750 and 24,850. This indicates that traders are increasingly comfortable defending higher levels rather than relying on 24,000 as the primary support, suggesting a shift in market sentiment towards higher price targets. Nandish Shah of HDFC Securities maintains that despite Tuesday's profit booking, Nifty remains in an overall uptrend, trading above all key moving averages.
According to CNBC TV18, Bank Nifty failed to sustain above the 57,900 zone during Wednesday's session and settled at 57,740 after the closing auction. The index remains range-bound with immediate resistance in the 58,100-58,200 range, where a sustained move could pave the way for 58,600 and 59,000, while support is seen at 57,400-57,300. Sudeep Shah of SBI Securities expects Bank Nifty to remain range-bound in the near term, with the 58,200-58,300 zone acting as immediate resistance that could determine the index's next directional move. He expects a sustained move above 58,300 could trigger a fresh upswing towards 58,800, followed by 59,200 in the short term, with downside support identified at 57,400-57,300. The divergence is largely due to uneven participation within the banking pack, with HDFC Bank and SBI providing support while ICICI Bank and Axis Bank have underperformed, limiting index gains.
The Nifty 50 resumed its upward march on Wednesday, ending 9 points higher at 24,624 after Tuesday's profit booking, as reported by CNBC TV18. The benchmark index traded in a narrow range for most of the session before witnessing a sharp 50-point jump during the Closing Auction Session (CAS). According to The Economic Times, the market recorded sharp upswings and downswings amid confusion surrounding the newly introduced closing auction session (CAS). Nandish Shah notes that despite Tuesday's weakness, momentum indicators continue to remain supportive, and as long as the index holds above the 24,350-24,400 support zone, the broader trend is likely to remain constructive. Sachin Gupta confirms this view, stating the immediate hurdle for the index is placed in the 24,750-24,800 zone and a sustained breakout above this zone could revive bullish momentum, with the expected trading range for the next session being 24,350-24,800.
