Ahead of Market: 10 things that will decide stock action on Wednesday
Sensex and Nifty50 ended higher for the second straight day on Tuesday, as gains in banking and financial stocks helped the indices reverse course in the final hour of trading after having spent the day under pressure due to some tepid earnings reports and persistent foreign selling.
The NSE Nifty 50 rose 0.52% to 24,467, while BSE Sensex gained 0.45% to 80,369. Both the indices had dropped about 0.7% each earlier before the U-turn sparked a second straight day of gains.
Here's how analysts read the market pulse:
«On the daily charts, we can observe that the Nifty has found buying interest from support zone of 78.6% Fibonacci retracement level 24,170 and started the next leg of upmove. The upmove is likely to continue towards 24,563 — 24,823 which are the Fibonacci extension targets. The hourly momentum indicator has triggered a positive crossover and there is a high probability that the counter trend pullback rally which started can continue over the next few trading sessions,» said Jatin Gedia of Sharekhan.
Tejas Shah of JM Financial & BlinkX, said, «As long as Nifty is holding above 24 K, the present pullback rally which started recently is likely to continue. However, it is facing a lot of resilience around 24,450 to 24,500 levels for the past couple of days on an immediate basis and we need to witness a decisive close above 24,450-500 levels for further strength in Nifty. Support for Nifty is now seen at 24,200 and 24,000. On the higher side, the immediate resistance zone for Nifty is at 24,450-500 levels
