Indian stock indexes got off to a strong start on Wednesday but failed to maintain momentum in the second half due to profit taking. However, analysts believe the Nifty 50 could rise to $25,150-$25,350 if it breaks Wednesday’s low.
“On the daily chart, the Nifty formed a small red candlestick followed by an Insider bar candlestick that managed to hold above the short-term trendline support. If the index breaks above the low of 24,690, it will rise. However, a close below this level could lead to another breakdown,” said Hrishikesh Yedve, AVP, Technical Derivatives Research, Asit C. Mehta Investment Intermediates. spoke.
He said support for the index would be at $24,750 and resistance at $25,200.
“For bulls, the 50-day SMA or 25,050 will be the key level to watch,” said Shrikant Chauhan, head of equity research at Kotak Securities. He also said that level-based trading strategies are ideal for traders as the current market structure is volatile.
In the second half, Bank Nifty continued to face pressure and formed a small red candlestick and then an insider bar candlestick. Yedve suggested a buy-on-the-touch strategy as long as the Bank Nifty index stays above the 50,190 level. He also said that on the upside, $51,700-$51,800 could be a near-term hurdle for the index.
