Banking Index Holds Above 50 DEMA - Religare Broking Ltd
Nifty
* Nifty witnessed a strong rebound on Wednesday, with benchmark indices gaining over 1% amid encouraging quarterly earnings and sustained buying in IT heavyweights.
* Technically, the Nifty has reclaimed the immediate resistance zone formed by the 20-day and 100-day DEMA, indicating an improvement in the near-term technical setup.
* The next crucial hurdle is placed around the 24,400 level, which coincides with the 200-day DEMA.
* With the broader trend turning constructive once again, we continue to advocate a stock-specific "buy-on-dips" approach, with a preference for relatively stronger sectors such as auto, pharma, and now metals, while maintaining disciplined risk and position management.
BANK NIFTY
* The Banking Index extended its recovery on Wednesday, sustaining above the 50 DEMA despite facing immediate resistance near the 20 DEMA.
* Following a gap-up opening, the index maintained positive momentum throughout the session, supported by selective buying interest.
* Market breadth remained mixed, with IndusInd Bank and Bank of Baroda outperforming, while IDFC First Bank and AU Bank witnessed profit booking.
* Resistance is placed at 58,000, with 56,500 acting as crucial support.
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