On the daily chart, Nifty formed a small-bodied candle with a noticeable upper wick, reflecting profit booking at higher levels. A similar upper wick was seen in the previous session as well, highlighting the index’s inability to sustain above higher levels, with the 50-day EMA continuing to act as a stiff resistance zone.
On the sectoral front, Nifty Media ended the day as the top sectoral gainer followed by Nifty Energy. On the other hand, Nifty Capital Market and Nifty Financial Services were the top two sectors to end the day in red. With regards to stocks, TMPV & Hindalco ended up as top two gainers while ONGC and HDFC Bank ended with losses.
The Midcap Index mirrored the movement seen in the benchmark indices. It formed a small-bodied bullish candle with a minor upper wick, signalling some profit booking at higher levels. Despite this, the Midcap Index touched a fresh all-time high and continues to outperform the Nifty Index.
Meanwhile, the Smallcap Index formed an indecision candle on the daily chart. The noticeable upper wicks seen over the last two sessions indicate profit booking emerging at higher levels.
However, the market breadth slightly improved as the advance-decline ratio was tilted in the favour of bulls at day’s close. A total of 284 stocks out of the Nifty 500 universe ended in the green.
Nifty View
Going ahead, the immediate resistance for Nifty is placed in the 24030-24050 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24200, followed by 24350 in the short term. On the downside, the immediate support for Nifty is placed in the 23720-23700 zone.
Bank Nifty View
Bank Nifty also moved out of its initial consolidation phase and climbed to an intraday high of 55,222. However, profit booking at elevated levels dragged the index lower, resulting in a close at 54,854, down 0.43%.
On the daily chart, Bank Nifty formed a small-bodied bearish candle with a noticeable upper wick, indicating weakness at higher levels and an inability to sustain gains. Similar to Nifty, Bank Nifty also failed to hold above its 50-day EMA and ended the session below it. Additionally, the RSI has witnessed a mild correction, further indicating the absence of strong momentum.
Going ahead, the immediate resistance for Bank Nifty is placed in the 55200-55300 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 55700, followed by 56100 in the short term. On the downside, the immediate support for Bank Nifty is placed in the 54400-54300 zone, says Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.