Nifty rebounded sharply on Wednesday, gaining over half a percent and extending the prevailing positive momentum - Religare Broking Ltd
Nifty
* Nifty rebounded sharply on Wednesday, gaining over half a percent and extending the prevailing positive momentum.
* Technically, the Nifty looks poised to retest the trendline hurdle near 25,450, and a decisive breakout above this level could propel the index toward 25,650 and beyond.
* We maintain a bullish bias and continue to advocate a “buy on dips” approach as long as the index holds above the 25,000 support zone.
* Sector rotation currently favors banking, metals, and auto, while defensives like FMCG and pharma may continue to underperform in the near term so participants should align their positions accordingly.
BANK NIFTY
* The banking index resumed its upward trajectory after a brief consolidation in the previous session, indicating sustained bullish momentum in the near term.
* The prevailing pattern of higher highs and higher lows remains intact, reinforcing the positive trend, with the index maintaining levels above the 50, 100 and 200-day EMAs.
* Momentum was mixed, driven by strength in AU Bank and Canara Bank, while IndusInd Bank and Axis Bank lagged.
* Key resistance is observed near 57,600, with support around 56,000.
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