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The Indian stock market will likely extend its rally from the previous sessions on Thursday amid hopes of a US-Iran peace agreement that dragged oil prices below $95. Although the blockade of the Strait of Hormuz by US remains a risk. GIFT Nifty also reflects the positive sentiment, trading 77.5 points higher at 24,327 from its last Nifty futures close.
On Wednesday, the Sensex surged 1,263.67 points or 1.64% to settle at 78,111.24, while the Nifty 50 rose 388.65 points or 1.63% to close at 24,231.30.
All major sectors closed in green, led by IT, realty, and energy. Broader markets outperformed, with Midcap and Smallcap indices up over 2%.
Technically, the Sensex opened with a gap-up and sustained positive momentum throughout the session. The index formed a small bullish candle on the daily chart.
On the downside, Key support zones are at 77,500-77,300, a break below these levels could change the sentiment to negative. In this case, traders will prefer to exit their positions.
Immediate resistance can be seen at the 78,500-78,700 zone.
Nifty 50 formed a bullish candle on the daily chart with a new higher bottom at 23,555.
"The huge opening upside gap of 8th April remains partially filled after five sessions of its formation. This is a positive indication. The underlying short-term trend of Nifty continues to be positive. On the way up further, Nifty could find overhead hurdles around 24,500 and 24,800 levels in the near term. However, immediate support is placed at 24,000-23,900 levels," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Rupak De, Senior Technical Analyst at LKP Securities, said Nifty found support at the 20 EMA on the daily chart on Monday, leading to a sharp recovery on Wednesday. The index, De said, has closed above the 50 EMA for the first time since February 23, indicating improving market sentiment, supported by softening crude oil prices. The RSI is in a bullish crossover and continues to rise, signaling strengthening momentum.
"However, the index has encountered resistance near the 50 per cent retracement level of the previous decline from 26,341 to 22,182. Going forward, the 24,250–24,300 zone is likely to act as a crucial resistance band. A decisive move above this range could trigger a rally towards 24,750–24,800. On the other hand, failure to break above 24,300 convincingly may lead to renewed selling pressure in the market," De said.
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On Wednesday, Bank Nifty rose 696.90 points or 1.25% to close at 56,301.95, forming a Doji candle, which reflects hesitation among investors.
The index witnessed volatility after a gap-up; it has failed to sustain above its 200-day EMA level and saw minor profit booking.
The 55,800-55,700 zone will act as immediate support. The 200-day EMA zone of 56,700-56,800 will act as a crucial resistance. A sustained move above this zone could trigger an upside toward 57,300.
