The Indian stock market is set to kick off on a positive note this Thursday, buoyed by optimistic global signals. Asian markets displayed gains, and the previous night’s performance of US stocks showed a mixed but stable trend. These factors are expected to uplift investor sentiments as they gear up for the trading day.
Gift Nifty indicators also point towards a favorable start for the Indian benchmark index. Gift Nifty was trading higher at the 20,183 level, surpassing the Nifty futures’ previous closing figure of 20,129.
Wednesday marked a historic milestone for domestic benchmark equity indices, with the Nifty closing above the remarkable 20,000 level for the first time in its history. The Sensex recorded a robust rally of 245.86 points, concluding at 67,466.99, while the Nifty climbed 76.80 points to reach 20,070.
In the realm of technical analysis, the Nifty’s daily chart exhibited a reasonable positive candle alongside Tuesday’s negative one. This market action suggests that the bullish sentiment remains intact. Although some selling pressure has emerged near the 20,100 level, there is currently no confirmation of a top reversal pattern forming at these new highs. Analyst Nagaraj Shetti, Technical Research Analyst at HDFC Securities, expressed the expectation of a decisive upward move beyond 20,100-20,150 levels, potentially driving the index towards 20,350-20,450 levels in the near term.
While optimism prevails, analysts caution that maintaining the 19,900 level is crucial for the current sentiment. A drop below this level could unsettle put writers, potentially leading to market corrections. On the upside, the range of 20,100-20,150 is poised to act as resistance, according to Rupak De, Senior Technical Analyst at LKP Securities. A breakthrough above 20,150 might usher in a sustained upward trend.
The Bank Nifty index also experienced a notable upswing, surging 398 points to close at 45,909 on Wednesday. Analyst Kunal Shah of LKP Securities noted a bullish engulfing candlestick pattern forming on the Bank Nifty, hinting at a potential reversal of the previous bearish sentiment. He highlighted that the index now has strong support in the 45,700-45,600 range, providing a crucial defense level against downward pressure. The immediate hurdle on the upside is at 46,000, with potential targets at 46,300 and 46,600 levels if breached.
As the trading day unfolds, investors will be closely monitoring these technical cues and global developments to navigate the dynamic Indian stock market.
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