Indian benchmark indices opened flat but surged later in the day, after the Reserve Bank of India maintained the monetary policy repo rate at 6.5 percent for the eighth consecutive time and also raised India's economic growth forecast.
At around noon, the Nifty traded above 23,200 points, up 1.6 percent of 380 points from the previous close.
Options data suggests the highest Nifty call options concentration at 23,400, followed by 23,500, which would act as crucial resistances for the day. Analysts have an optimistic outlook on the Nifty index, looking at it upward momentum.
Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox, said, "The Nifty 50 index is gradually heading towards striking a new all-time high, surpassing the previous record of 23,338. The current momentum is highly optimistic, as stability over the 22,400-22,500 range should trigger fresh upward momentum."
Nifty's next stop: 24,000 in sight? Technical structure positive
"To embark on the fresh leg of the upside, the index must display a robust trend over the 22,350-23,400 mark. When that happens, a rally to 24,000 cannot be ruled out. The immediate trend runs with a positive bias and may stay upward tilted till the support of 22,400-22,500 is defended," Bagkar added.
He noted that the Relative Strength Indicator has a broadening formation on the daily chart, signaling a wider allocation of strength.
"Nifty has crossed above 23,000 and managed to hold above the same. Looking at the current technical structure, we feel that the market should reclaim its previous all-time high mark of around 23,300," said Riyank Arora, Technical Analyst at Mehta Equities.
"The overall technical structure continues to remain positive and on a bullish note, with immediate support now being around 22,900," Arora stated.
Among individual stocks, long build up is observed in Ramco Cement, Indian Hotels, Dixon and Mphasis. While short build up observed in Tata Chemicals, Colgate Palmolive and Exide Industries.
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