On Wednesday, the Indian Stock Market witnessed an increase for the sixth consecutive session. The Sensex closed 214.17 points or 0.37% higher at 58,350.53 and Nifty ended 42.70 points or 0.25% higher at 17,388.20.
Talking about the sectoral indices, Nifty Financial Services and IT closed on the green mark. Banking, Auto, FMCG, Pharma, Bank, Media, and Metal declined. The BSE Midcap index lost 0.6% and the Smallcap index fell 0.28% yesterday.
Spice Jet has responded to reports of stake sale. The airline said it is in discussions with several investors for financing. Following the remarks, the airline’s shares rose 18% to Rs 52. It closed at 49.75, up 12.18%.
Technical View of the Indian Stock Market
NIFTY (Spot Levels)
Nifty slipped early in the day but managed to close 0.25% positive at 17388.15. Major gains were contributed by the IT sector.
Nifty is in the late stages of this move and momentum is slowing down so it calls for some caution. However, it can still extend till the trendline of highs close to 17800.
On the Hourly Chart, it tried to break the 20-hour average but recovered to a new high.
If the intraday support zone of 17300 – 17250 is broken then it can test 17150 – 17100 levels. On the upside if Nifty breaks and sustains above today’s high of 17407.5 then it can test 17500.
The 20-hour average which is currently at 17302 can also be used as trailing support. The negative RSI divergence continues.
Bank Nifty (Spot Levels)
Bank Nifty closed marginally negative and below the 38000 mark at 37989.25. It is showing early signs of some weakness.
Similar to Nifty, it also calls for some caution as we are in the late stages of the rally.
Bank Nifty is back in the channel. The negative divergence with RSI on the hourly chart persists.
If the 20-hour average at 37882 is broken on an hourly closing basis then it indicates weakness and it can then fall further to 37500
On the upside, if it breaks and sustains above yesterday’s high of 38179.85 then it can test 38300.
More levels and updates, will provide during market hours.
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