Last Updated:
According to market analysts, the Nifty’s first resistance will be 22,577-22,611 on Tuesday. Its major resistance will be 22,660-22,699/22,727.
Stock Market Today.
The SGX Nifty, also known as the GIFT Nifty, is signalling a strong opening in the stock market today. As of 7:30 am, the GIFT Nifty was up by around 130 points, which was 0.57 per cent up against the previous close. It signals a strong opening of the BSE Sensex and the NSE Nifty on Tuesday.
The Indian stock market in the previous session on Monday snapped its five-day losing streak following buying in banking stocks and a sharp rally in global shares.
The 30-share BSE Sensex climbed 341.04 points or 0.46 per cent to settle at 74,169.95 as 19 of its constituents ended in the green and 11 in the red. In intra-day trade, the benchmark jumped 547.44 points or 0.74 per cent to 74,376.35. The NSE Nifty rose by 111.55 points or 0.50 per cent to 22,508.75.
Foreign investors continue to sell Indian equities. On Monday, FIIs sold a net Rs 4,488 crore, while DIIs bought a net of 6,001 crore in Indian equities.
Technical View Of Indian Stock Market Today
According to market analysts, the Nifty’s first resistance will be 22,577-22,611 on Tuesday. Its major resistance will be 22,660-22,699/22,727.
On base, the Nifty will have first support at 22,329/22,363-22,413 and major support at 22,250-22,281.
On Monday, the most put writing was recorded at the 22,500 level.
“The index formed a bullish piercing line candlestick pattern, indicating buying interest at lower levels near the 50% retracement of the previous upward move. It has taken 5 sessions to retrace just 50% of the prior 4-session rally (21965-22676), a shallow retracement signals strength. A move above Monday’s high (22,577) could trigger an upside towards 22,700 and 23,000 in the coming sessions. Immediate support is seen at 22,200-22,300 sustaining above this level will maintain the current pullback trend,” according to Bajaj Broking.
On the Bank Nifty, the first resistance level will be 48,475-48,588 and the major resistance will be at 48,753-48,888/48,952.
Is Market Bottoming Out?
Axis Securities said the “market is nearing a medium-term bottom” and advised investors to allocate some long-term money between the Nifty levels of 21,700 and 22,000.
“While a clear bullish trigger is yet to emerge, historical patterns, technical indicators, and sectoral valuations suggest that the market is nearing a medium-term bottom. Therefore, we would advise investors to allocate some long-term money between 21700-22000,” Axis Securities said in its latest report, titled ‘India Equities Exclusive’.
It added that while most investors cannot catch the exact top and bottom, prudent investing is about cashing in on opportunities, especially when sentiment is so one-sided.
“One such opportunity is now,” Axis stated, adding that the current market environment exhibits signs of excessive pessimism and fear.
“The Nifty has entered a critical support zone defined by the 100-week Moving Average Envelope (+/-3%), which has historically contained declines except during extreme events like the Covid crash. This suggests proximity to some sort of a durable bottom,” Axis Securities said in the report.
The 14-week Relative Strength Index (RSI) has reached the oversold “bull market” zone (33-40). Historically, 87% of corrections reaching this zone have resulted in a market trough and subsequent rally, it added.