Nifty Resistance Moves To 23,850 Post Relief Rally; Volatility To Stay High
The Indian stock market benchmarks Nifty and Sensex witnessed a relief rally on Tuesday, with the NSE Nifty 50 advancing 1.8% to settle above 22,900. However, analysts expect volatility to remain high in the near term amid uncertain global cues, rising crude oil prices, and escalating geopolitical tensions.
Trade Setup: Nifty Resistance and Support Levels
According to experts, the Nifty is expected to consolidate in the range of 22,400-23,850 in the coming sessions. Nifty technical analysis suggests that the index needs to start forming higher highs and higher lows on a sustained basis and close above the last week’s high of 23,862 to signal a pause in the current downtrend.
Bajaj Broking Research, in a note, said volatility is expected to remain elevated in the near term amid uncertain global cues, rising crude oil prices, and escalating geopolitical tensions. Momentum indicators are showing early signs of improvement from oversold levels, but continue to remain in a relatively weaker zone, said Ponmudi R, CEO of Enrich Money.
Nifty Bank: Resistance and Support Levels
The banking benchmark Bank Nifty also witnessed a gap-up opening on Tuesday and ended the day at 52,605, registering a healthy gain of 2.27%. On the daily chart, it has formed a small-bodied candle with shadows on both sides, indicating a phase of indecision after the recent pullback, said Sudeep Shah, head – technical and derivatives research at SBI Securities.
Shah added that going forward, the zone of 53,000–53,100 will act as an immediate resistance area for the index. Bank Nifty technical analysis suggests that the index may face stiff resistance at these levels.
Market Recap: Indian Equity Benchmarks End Higher
Indian equity benchmarks ended higher on Tuesday, recouping most of Monday’s losses. The BSE Sensex rose 1.9% or over 1,370 points to close above 74,000 and the NSE Nifty 50 advanced 1.8% to settle above 22,900. The gains in the benchmark indices were led by HDFC Bank, ICICI Bank, and L&T.
All the 15 sectoral gauges compiled by the NSE advanced, led by the NSE Nifty Auto Index’s 2.4% rally. Sensex news and updates can be found on our website.
Investor Sentiment: What to Expect in the Coming Sessions
Analysts expect the upcoming period to remain volatile for the Dalal Street. The current move is more of a relief bounce rather than a confirmed trend reversal, with upside likely to face resistance unless supported by stronger triggers. Investing in the Indian stock market requires a long-term perspective and a well-diversified portfolio.
Vinay Rajani, senior technical research analyst, HDFC Securities, sees Nifty facing stiff resistance at 23,378, with support clustered near 22,600. Nifty trading strategies can be found on our website, along with other stock market tips and updates.