The Indian stock markets started the day on a positive note as crude oil prices continued to drop, down for a fourth day in a row. The Nifty 50 opened 30.75 points higher at 23,464.05, and the Bank Nifty opened 19.25 points higher at 56,489.90, compared to the previous day's close. The Sensex rose by 42.51 points to 74,901.50.
The Indian rupee opened higher at Rs. 95.75 per dollar on Tuesday versus Monday's close of Rs. 95.81. Foreign institutional investors (FIIs) sold equities worth Rs. 576 crore on September 21, while domestic institutional investors (DIIs) bought equities worth Rs. 2,800 crore during the session.
The Sensex remained bullish on the day and relentlessly ticked higher, settling near the 75,000 level.
The index has a sideways bias as 74,000-74,450 is likely to serve as the critical support level and 75,000-75,500 the major resistance zone.
If buying pressure continues to get stronger and moves above 75,000, then the short-term price structure would improve, but if it breaks below 74,000, it could lead to a rise in selling pressure. Sachin Gupta, VP, Technical Research at Choice Equity Broking Private Limited, noted that traders need to watch the OI levels and wait for a clear breakout/breakdown for fresh directional trades.
The Nifty 50 began the week on a positive note, rising 0.35% for the fourth consecutive session. Momentum indicators also improved, with bearish momentum easing.
A Sustained break above the 23,600 level may set the stage for additional gains in the index, while any further declines in price may find support around the 23,500 area. The immediate support is at 23,300, followed by the important 23,000 level.
Also Read: NASDAQ 100 Jumps Nearly 2% as Tech Stocks Lead Wall Street Rally
The weekly chart of Bank Nifty shows that it has been forming lower highs and lower lows and is trading below both its daily and weekly moving averages, indicating a medium-term bearish trend.
In the near term, strong support is seen at 55,700. If Bank Nifty breaks below this level, it could face further downside. If it does, the pullback may reach the 57,000-57,700 range. Any dip toward 56,300-56,350 could be a buying opportunity, with 55,700 as the key level to watch on the downside.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.