Bajaj Broking Research Market Closing Commentary
Benchmark indices snapped its two sessions decline and ended the session with strong gains ahead of U.S. President Donald Trump’s tariff deadline. Nifty started the session on a flat note, index thereafter gained momentum and closed near the high of the session higher by 167 points or 0.72% at 23,332.35. The broader market echoed the upbeat sentiment, with the Nifty Midcap 100 climbing 1.61% and the Smallcap 100 gaining 1.12%. All the sectoral indices closed in the green with Realty index leading the gains closing higher by 3.6%. Nifty FMCG, Bank, IT and Auto were the top performers, rising up to 1%.
Nifty Outlook
It has formed a bull candle which remained enclosed inside previous session price range signaling consolidation ahead of the U.S. President Donald Trump’s tariff deadline. Index has already taken 6 sessions to retrace just 50% of its preceding 6 sessions up move (22,353-23,869). A shallow retracement signals overall positive price structure. We believe the current breather should be used as a buying opportunity in quality stocks in a staggered manner. Nifty has key supports placed at 23,000-22,800 levels, we expect the index to hold above the same and gradually head higher towards 23,869 (last week high) and then towards 24,200 levels in the coming weeks being the high of January 2025 and key retracement area.
Bank Nifty Outlook
Bank Nifty witnessed a strong rebound in Wednesday's session ahead of the U.S. President Donald Trump’s tariff deadline. It has formed a bull candle which remained enclosed inside the previous session price range signaling continuation of the consolidation. Index in the last 6 sessions has retraced just 30% of the preceding 9 sessions rally (47,703-52,063). A shallow retracement and a higher base above the recent breakout area (50,500-50,000) signals overall strength.
Bajaj Broking believes the current breather should be used as a buying opportunity in quality stocks in a staggered manner. Index has key supports placed at 50,500-50,000 levels, we expect it to hold above the same and gradually head higher towards 52,050 (last week high) and then towards 53,000 levels in the coming weeks being the measuring implication of the recent range breakout.
