Bulls in control till Nifty stays above 24,500, RBI decision awaited, say experts

Bulls in control till Nifty stays above 24,500, RBI decision awaited, say experts.

The domestic equity benchmarks rebounded on Wednesday after three straight sessions of losses, supported by firm global cues and strong buying in heavyweights.

The Sensex climbed 260.74 points or 0.32 percent to close at 80,998.25. During the session, it rose as much as 349.78 points to touch a high of 81,087.29. The NSE Nifty also advanced 77.70 points or 0.32 percent to settle at 24,620.20.

Analysts said bullish sentiment remained intact so long as the Nifty stays above the key support level of 24,500. Market participants are now keenly awaiting the Reserve Bank of India's monetary policy decision due Friday.

According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty is likely to trade sideways until the RBI outcome. "There is a bearish crossover in the momentum oscillator RSI, indicating weak price momentum. Support is placed at 24,500. A breach of this level could trigger further downside. On the higher end, resistance is seen around 24,750–24,900," he noted.

Experts at Bajaj Broking pointed out that the Nifty formed a narrow bull candle within the previous session’s range, indicating ongoing consolidation and stock-specific action ahead of the weekly expiry on Thursday.

They added, "Buying is emerging near the lower end of the recent 16-session range of 24,400–25,080. This zone coincides with multiple technical indicators including a previous breakout level, swing lows, and key Fibonacci retracements. A sustained move below the 24,400–24,500 band could lead to sharper correction. On the upside, 25,050–25,080 remains a significant resistance zone.”

On the Bank Nifty front, Bajaj Broking said the index formed a Doji candle, reflecting indecisiveness ahead of the RBI policy. The index has been consolidating in a broad range of 53,500–56,000 over the past five weeks.

"A close above 56,000 will be needed for a breakout toward the 56,700 level. Failing that, the range-bound movement may continue. Immediate support lies between 55,000–55,200, while key support is in the 54,000–53,500 range, aligning with the 50-day EMA and key retracement levels," the brokerage said.

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