The Indian stock markets are likely to open on a negative note amid mixed global trends and a fresh escalation in the Middle East. GIFT Nifty also indicates a gap-down start, trading at 23,444 with a discount of 159 points from its previous Nifty futures close.
The Sensex jumped 382.50 points or 0.52% to close at 74,649.84. While the Nifty 50 rose 100.95 points or 0.43% to settle at 23,483.55.
The Indian rupee opened lower by 18 paise at Rs. 95.45 per dollar on Wednesday compared to the previous close of Rs. 95.27.
Foreign investors net sold shares worth Rs. 8,363 crore and domestic institutional investors (DIIs) net bought shares worth Rs. 9,589 crore on June 1.
The Sensex has formed a reversal pattern on intraday charts with a bullish candle on the daily charts, indicating a further uptrend from the current levels.
“The 74,000 and 73,800 would act as immediate support levels for day traders. As long as the market is trading above these levels, the pullback formation is likely to continue. For the Sensex, 75,000 and 75,300 levels are key resistance. On the flip side, below 73,800, the sentiment could turn negative. If that level is breached, traders may prefer to exit their long positions," said Shrikant Chouhan, Head of Equity Research at Kotak Securities, while speaking about the current market scenario.
The Nifty 50 snapped its four-session decline and closed around the 23,500 mark after strong buying demand from lower levels. The index formed a bullish Marubozu candlestick pattern.
According to Bajaj Broking, Buying emerged from the important support region of 23,200-23,000, which coincides with the lower band of the April 8 bullish gap area, the lower end of the recent consolidation range and the 61.8% retracement level of the previous rally from 22,182 to 24,601.
"Going ahead in the coming sessions, a follow-through strength above Tuesday's high (23,556) will open further upside towards the resistance area of 24,750-24,800 levels," the brokerage stated.
The brokerage added that if the index fails to move above Tuesday's high, it may continue to consolidate within the 23,200-23,550 range. On the upside, the 23,700-23,800 zone is expected to act as an immediate resistance area.
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On Tuesday, Bank Nifty advanced 71.55 points or 0.13% to close at 53,714.65, forming a bullish candle with a lower high and a lower low on the daily chart, highlighting consolidation.
Bajaj Broking Research explained that the index might continue trading within a broad range of 52,500 to 54,600 unless a decisive breakout or breakdown provides fresh directional cues, “Key support for the banking index is seen in the 52,700-52,500 zone, which aligns with the lower end of the April bullish gap area and the 61.8% retracement of the previous rally from 49,955 to 57,456. On the upside, immediate resistance is placed between 54,600 and 55,000, a zone that coincides with the current week's high and the 20-day EMA.”
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