Where is share market headed after Nifty closes above 18820, Bank Nifty above 43930; check support, resistance

Where is share market headed after Nifty closes above 18820, Bank Nifty above 43930; check support, resistance

Benchmark indices NSE Nifty 50 and BSE Sensex ended the last session of the week broadly in green. The NSE Nifty 50 gained 137.90 points or 0.74% to 18,826 and BSE Sensex skyrocketed 466.95 points or 0.74% to 63,384.58. In sectoral indices, Bank Nifty surged 494.55 points or 1.14% to 43,938.15, Nifty Financial Services jumped 1.19% and Nifty PSU Bank soared 1.46% while Nifty IT fell 0.38% and Nifty Realty dipped 0.21%. The top gainers on Nifty 50 were HDFC Life, SBI Life, Bajaj Finserv, Dr Reddy’s Laboratories and Titan while the losers were Wipro, Bajaj Auto, TCS, BPCL and ONGC.

“The domestic market rebounded with strong buying in banking, pharma, and consumer stocks, along with positive cues from global markets. The US market’s optimism was bolstered by better-than-expected retail sales, reflecting the robustness of the economy. Furthermore, jobless claims remain elevated and a decline in import prices raised hopes for a prolonged pause in interest rate hikes by the Fed, contradicting their announcement of potential future rate hikes made the previous day,” said Vinod Nair, Head of Research at Geojit Financial Services.

Bank Nifty may slip to 43250

“As long as Bank Nifty is trading below the 20 day SMA or below 44000, the weak sentiment is likely to continue. Below the same, it could slip till the 50 day SMA or 43250. On the flip side, a fresh uptrend is possible only after the dismissal of 44000, and above the same it could retest the level of 44300,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd.