Indian equity benchmarks are likely to open flat or mildly negative amid uncertainty surrounding the US-Iran ceasefire. GIFT Nifty also echoes a lower opening with trading at 23,994 and a discount of 105 points from its previous Nifty futures close.
On Wednesday, Sensex gained 2,946.32 points or 3.95% to close at 77,562.90. While Nifty 50 rose 873.70 points or 3.78% to settle at 23,997.35.
Broader markets also rallied, with Nifty Midcap 100 advanced 4.09%, while Nifty Smallcap 100 surged 4.39%.
At the same time India VIX plunged about 20% showing traders felt much less risk in the market than in the days prior.
Also, the rupee opened at 92.92 against US dollar and then gained ground to touch 92.56 against US dollar in initial trade and finally ended the day at 92.59.
Technically, Sensex formed a bullish candle on the daily chart. Throughout yesterday’s session there was sustained buying interest with minimal intraday corrections, indicating strong bullish dominance.
Immediate support is placed at 76,800-77,000 and this zone will likely act as a demand area in case of decline.
The resistance can be seen at 78,000-78,200 and a break above will ensure the continuation of the ongoing rally.
Nifty 50 formed a bullish Marubozu-like candle on the daily chart, indicating sustained buying throughout the session.
Immediate support for the index can be seen at 23,800-23,700, followed by a deeper base at 23,500.
On the upside resistance is placed at 24,150-24,200; any sustained move above this zone may trigger a rally toward 24,400, followed by 24,600.
Bank Nifty rose 2,987.65 points or 5.67% to settle at 55,703.90 on Wednesday, forming a strong bullish candle.
“Going ahead, the immediate resistance for Bank Nifty is placed in the 56,200 - 56,300 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 56,700, followed by 57,000 in the short term. On the downside, the zone of 55,200-55,100 is likely to act as an immediate support,” said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.
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