Rajesh Palviya, Head of Research, Axis Direct
The Nifty 50 extended its winning streak to a fifth consecutive session, ending 82 points higher at 24,168, as strength in financials, pharma and realty stocks outweighed persistent weakness in the IT pack. Optimism surrounding the NSE’s draft IPO filing supported financial stocks, while softer crude oil prices continued to improve sentiment towards rate-sensitive sectors. However, IT remained under pressure amid the US Federal Reserve’s hawkish policy stance.
Global cues are broadly supportive. US markets staged a strong rebound overnight, led by technology stocks, with the Nasdaq gaining nearly 2% and the S&P 500 advancing over 1%. Asian markets are also trading with a positive bias, while Brent crude has eased towards $78 per barrel following the US-Iran agreement that reopened the Strait of Hormuz, providing relief for India’s inflation and current account outlook. However, GIFT Nifty is indicating a mildly weaker start, suggesting some profit booking after the recent rally.
From a technical perspective, the broader trend remains constructive as long as the Nifty sustains above the crucial 24,000 mark. This level is expected to act as an immediate support, while 24,250-24,400 remains the key resistance zone. A decisive breakout above 24,400 could trigger fresh momentum and short covering, paving the way for higher levels. On the downside, any sustained breach below 24,050 may lead to profit booking towards 23,950, with the next support placed around 23,850. Overall, the strategy remains to buy on dips while the index holds above 24,000, as the medium-term bullish structure continues to remain intact. 23,800. Overall, the strategy remains to buy on dips while the index holds above 24,000, as the medium-term bullish structure continues to remain intact.
