The Nifty 50 opened higher, riding an eight-month peak before Diwali. The surge comes from falling crude oil prices and renewed foreign investment. The Nifty 50 opened 293.15 points higher at 25,337.80, compared with the previous session’s close. Bank Nifty started at 60,524.70, up 783.45 points. Sensex edged higher by 1,142.03 points to 82,248.68.
Broader markets supported the rally, as the Nifty Midcap 100 and the Nifty Smallcap 100 indices gained nearly a percent each.
The Indian rupee opened 29 paise higher at Rs. 93.74 per dollar on Wednesday versus Monday's close of Rs. 93.93.
Foreign Institutional Investors (FIIs) poured $5.68 billion into Indian shares this month, more than any month since September 2024.
Despite witnessing intraday sideways movement in the previous session, the Sensex managed to hold above the 80,600-80,700 support zone, while 82,400-81,450 remains the immediate resistance area.
The broader trading range is placed between 80,600 and 82,500, with the overall bias remaining bullish as long as key support levels are defended.
"From a technical perspective, it remained range-bound throughout the session, eventually closing marginally higher with a long lower wick, indicating buying interest at lower levels. The index continues to trade above all key moving averages, although the Daily RSI at 79.67 indicates an overbought zone,” said Sachin Gupta, VP, Technical Research at Choice Equity Broking Private Limited.
Nifty 50 traded above its resistance zone of 25,150-25,200 level and is likely to maintain a positive near-term bias. A sustained breakout above this range could strengthen the upward momentum and extend the rally towards 25,500.
“On the downside, 25,000 remains the crucial support, followed by 24,800. Momentum indicators continue to favour the bulls, with the RSI pointing towards overbought conditions, while the MACD maintains a positive bias, indicating sustained upward momentum,” said Ponmudi R, CEO of Enrich Money.
He believes the technical outlook remains bullish but somewhat stretched, with intermittent consolidation and profit-booking possible at higher levels. “Sustained trading above 24,800 will be important to preserve the positive near-term structure,” he added.
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Bank Nifty closed above its earlier resistance zone of 58,600-58,700 and has sustained above this range over the last couple of sessions, indicating that the bulls remain in control.
Going forward, the 60,000 mark will be crucial for Bank Nifty. A sustained move above this level could trigger further short covering and fresh buying, potentially taking the index towards 60,500 and 61,000.
On the downside, 59,000 is the immediate support, followed by 58,500 and 58,000. The banking index has displayed positive relative strength, but after the recent sharp appreciation, traders should remain selective and avoid aggressive leveraged positions at elevated levels. The near-term outlook remains positive as long as the index sustains above 58,500.