Bajaj Broking Market Closing Commentary

Benchmark indices rose for the third consecutive session, driven by strong buying in banking, oil & gas, and metal stocks. The Nifty gained 73.30 points, or 0.32%, closing at 22,907.60, ahead of the Federal Reserve’s FOMC meeting outcome announcement.

The broader market outperformed, with the Midcap 100 and Small cap 100 indices jumping 2.6% and 2.4%, respectively. Nifty sectors such as PSU Bank, Metals, Oil & Gas, and Realty were the top performers, with gains ranging from 2.5% to 1%. However, weakness in the IT and FMCG indices dampened sentiment declining by 0.5% to 1%. 

Nifty Outlook

Nifty extended up move for the 3rd session in a row and closed above 22,900 levels. The index on the daily chart has formed a small bull candle with shadows in either direction signaling consolidation with positive bias after Tuesday's strong up move. 

Index on expected lines extended up move and is seen heading towards 23,000-23,200 levels in the coming sessions. Immediate support is placed at 22,500-22,600 levels being the confluence of 20 days EMA and Tuesday bullish gap area. 

Immediate resistance is placed at 23,000-23,200 being the confluence of the 50-day EMA and the trendline resistance joining last 6 months highs. Overall structure is positive. We expect the index to move above the same and head towards 23,500 levels in the coming weeks.

Bank Nifty Outlook

Bank Nifty gained for the fifth session in a row as it formed a second consecutive strong bull candle with a higher high and higher low highlighting strength and extension of the up move. Going ahead, we expect the index to maintain positive bias and head towards 50,100 and 50,600 levels in the coming sessions.

While immediate support is placed at 48,800-49,000 levels being the confluence of key retracement of current up move and 20 days EMA. The index in the last 9 weeks has been consolidating in the broad range of 47,700-50,600. 

Buying demand has recently emerged from the lower band of the range and we expect the index to head towards the upper band of the range placed at 50,600. We believe a breakout above the upper band will signal a major reversal of trend.