Last week, 23,884 was identified as the initial downside support. On the upside, the 24,096 – 24,260 levels were highlighted as the immediate resistance zones to watch, with the 24,600 – 24,854 range acting as the major resistance. In the early trading sessions of last week, after testing the aforementioned 23,884 level once, the Nifty rebounded to touch 24,482 before closing near the 24,330 mark.
While the ruling coalition’s victory in three out of the five major state elections was the primary focus initially, the easing of Iran-US tensions took center stage in the days that followed. Meanwhile, several leading companies announcing financial results that either comfortably beat or completely missed expectations triggered massive volatility in their respective stocks. The upward momentum was predominantly visible in the Telecom, Healthcare, and Chemical sectors. Let us look at what to expect in the coming days.
The Nifty closed last week at 24,176. The bulls ultimately lost the upper hand they had maintained throughout the week by the final trading day. Even as the action continues in small-cap and mid-cap stocks, the benchmark index clearly indicates that it is not in a similar ‘mood’. For this sentiment to shift, the Nifty must break past at least the 24,602 level in the upcoming sessions. Failing to do so would mean the end of the Nifty’s current rally, marking the beginning of the next downtrend.
In the immediate future, the closest resistance zone to watch is at 24,250. Closing above this will be the first major hurdle for the index. On the downside, the immediate support is positioned at 24,110. A close below this level is a clear technical indicator of further pressure mounting on the Nifty. If the crucial 23,882 level is also breached, it will significantly strengthen the bears’ grip on the market.
This week is packed with more corporate earnings releases. Alongside these, India’s April inflation figures are due to be announced, which will provide vital cues regarding the Reserve Bank’s potential moves on interest rates. The market is also eagerly awaiting this week’s IIP data as well as the US inflation numbers. Although minor skirmishes are being reported again in the Hormuz, there is prevailing optimism that the situation is moving towards a resolution. However, the fact that crude oil prices continue to remain at elevated levels is undoubtedly a dampener for India’s economic aspirations.