The Indian stock market experienced a significant upswing on Wednesday, with the Sensex soaring by 1,022.50 points, or 1.21%, closing at 85,609.51. Concurrently, the Nifty 50 index rose by 320.50 points, equating to a 1.24% increase, ending the day at 26,205.30. These remarkable gains come after a three-day decline and have positioned both indices near record highs, prompting optimism for a positive opening on Thursday.
The GIFT Nifty, an indicator of market sentiment, was trading around 26,440, reflecting an increase of 60 points compared to the previous Nifty futures close. This suggests that momentum from Wednesday’s rally may carry into the next trading session.
Market Performance Overview
The Sensex’s rebound was marked by the formation of a robust reversal candle on daily charts, signaling renewed buying interest. Analysts view the 85,000 to 85,300 range as significant support levels, indicating that as long as the index remains above this threshold, the short-term outlook is positive. Resistance levels are anticipated between 86,000 and 86,200, with a breakthrough potentially leading to fresh record highs.
For the Nifty 50, a strong bullish candle engulfed the previous four sessions’ trading range, a clear indicator of upward momentum. Analysts project that the index could soon reach new all-time highs, with immediate targets set at 26,300 and 26,500. Support is identified at 26,050 to 26,000, while resistance is expected around 26,270 to 26,300. A decisive move above 26,300 could catalyze further gains towards 26,500 to 26,700.
The Bank Nifty index also made headlines, closing at 59,528.05 after forming a bullish candle. Analysts suggest that if the index finishes above 59,400, investors may consider a buy-on-dips strategy. A close above 60,000 could open doors for a rally towards 61,000, with strong support noted at the 59,000 to 58,841 levels.
Market Sentiment and Future Outlook
According to Siddhartha Khemka from Motilal Oswal, the rebound in the market reflects a resurgence of confidence among investors. This optimism is bolstered by expectations of potential interest rate cuts from both the US Federal Reserve and the Reserve Bank of India (RBI). As macroeconomic conditions appear to favor growth, Indian markets may be on the brink of achieving new record highs.
Traders are currently focusing on the derivatives market, where a significant volume of trades has concentrated around the 26,000 strike. Heavy call writing at this level suggests that short-term traders are engaging in profit-booking, while maximum put open interest at 25,800 indicates robust support at lower levels.
As market participants digest the implications of these developments, the sentiment remains cautiously optimistic. The recent rally not only highlights the resilience of the Indian markets but also underscores the potential for further gains, provided that key resistance levels are broken.
This article serves only as informational content and does not constitute financial advice. Investors are encouraged to conduct thorough research before making investment decisions.
