- Summary:
- The Nifty 50 index extended its upward momentum on Wednesday, ending the day 71 points higher.
The Nifty 50 index extended its upward momentum on Wednesday, ending the day 71 points higher. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the market initially headed higher at the open. Still, it got stuck in a range where it stayed for the rest of the session. However, a late rally pushed the Nifty 50 to near its highs for the day.
The formation of a bullish candle on the daily chart signals that the Nifty 50 has surpassed the previous resistance levels at about 24,700, as it broke above the 10- and 20-day exponential moving averages (EMAs). The Nifty’s near-term trend is still positive, and the index is ready to reach the following resistance levels ranging from 24,960 to 25,100, which could happen over the next week.
The Nifty 50 has support at 24,650, with sector rotation being the primary driver behind the Nifty’s strength. Still, the uptrend could slow down since there is an emerging negative divergence in market momentum. The Bank Nifty index also had a slight dip to reach the critical support zone at 50,350-50,300 but encountered buying interest at the level, which indicates that a rally to the resistance zone at 51,000-51,500 is quite likely.