Rajesh Palviya, Head of Research, Axis Direct
The Nifty 50 staged a strong comeback on Wednesday, advancing 197.55 points (0.83%) to close at 24,021.65, reclaiming the crucial 24,000 mark after Tuesday’s sharp decline. The recovery was broad-based, led by banking, financials and IT stocks, as a sharp decline in crude oil prices improved the macro outlook for India while optimism surrounding a potential India-US trade agreement further supported investor sentiment.
Global cues remain constructive.
Although US markets ended the regular session on a mixed note, strong earnings from Micron and upbeat guidance from Qualcomm triggered a rally in semiconductor stocks after the close, lifting sentiment across Asian markets. South Korea’s Kospi surged over 5%, while Japan’s Nikkei gained more than 2%. Meanwhile, Brent crude slipping below $74 per barrel is a meaningful positive for India’s inflation and current account outlook, though expectations of a more hawkish Federal Reserve continue to keep global risk appetite in check. GIFT Nifty trading around 24,080 indicates a positive start for domestic equities.
Technically, the undertone remains positive as long as the Nifty sustains above the 24,000 mark. Immediate support is placed at 23,900, followed by 23,790-23,750 if profit booking intensifies. On the upside, the 24,090-24,150 zone remains the key resistance, and a decisive breakout above this supply area could trigger fresh short covering, paving the way towards 24,300. While supportive global cues and lower crude prices favour further gains, traders should remain watchful of expiry-related volatility and evolving global monetary policy expectations.
