Indian equity market snapped three sessions of a losing streak on Wednesday, powered by a rally in banking, auto, and capital goods shares. Sensex closed 478 points higher at 57,625 and Nifty climbed 140 points to end at 17,123. Mid-cap and small-cap indices on BSE rose 164 points and 61 points, respectively. Banking, capital goods, and auto shares were the top sectoral gainers with their BSE indices zooming 493 points, 235 points, and 284 points, respectively. Of 30 Sensex stocks, 25 ended in the green.
Here's a look at what analysts said about the direction the market is likely to take today:
Rupak De, Senior Technical Analyst, LKP Securities
“The index has found support at 200 DMA for the second consecutive day. The daily RSI is in a bullish crossover. Over the short term, the index may remain within a band. On the lower end, 17,000 may act as support; whereas, 17,300 may act as resistance on the higher end."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"The short-term trend of Nifty is range-bound with positive bias. The market is now making an attempt to form a short-term higher bottom formation around 16950 levels. A sustainable move above the hurdle of 17,260 levels could confirm more upside for the near term. Immediate support is placed at 16,950 levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd
“As long as the index is trading above the 17,000 mark, the pullback formation is likely to continue. Above the same, the index may touch the level of 17,225-17,275. On the flip side, below 17000, the index could slip till 16,900.”
Om Mehra, Technical Associate, Choice Broking
“Technically Nifty has formed a bullish candle in the daily chart, as it closed above 17,100, an important Fibonacci level. The overall structure shows that the index is likely to witness consolidation and short-term buying in the range of 17,000-17,300. Once it sustains 17,340 levels, we can expect a rally till 17,500 levels in coming days. Indicators such as RSI and MACD are showing some strength to lead towards upside in the daily chart."
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