The Nifty 50 rebounded sharply and recouped all its previous day's losses on April 29, tracking positive trend in Asian counterparts ahead of the US Federal Reserve's two-day meeting that starts on April 30, and rally in banks post ICICI Bank earnings.
The index decisively closed above 22,600 and completely negated Dark Cloud Cover pattern (bearish reversal pattern) formed in the previous session, hence paving the way for a march towards 22,776-22,800 in the coming sessions, with immediate support at 22,500-22,550 and key support at 22,400 mark, experts said.
The Nifty 50 opened higher at 22,476 and remained in an uptrend throughout the session. The index hit a day's high of 22,656, before closing the session at 22,643, up 223 points or 1 percent and formed long bullish candlestick pattern on the daily charts. The index continued to trade above all key moving averages, which is a positive sign.
"The index maintained its position above the critical 21EMA (exponential moving average 22,373), signaling a continuation of the bullish trend," Rupak De, senior technical analyst at LKP Securities said.
He feels the momentum indicator, RSI (14), shows a bullish crossover. It is projected to move towards 22,800-22,850 in the short term, with support at 22,550.
According to Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas, the immediate hurdle on the upside is placed at 22,776 and above that potential towards 23,000.
The options data indicated that the Nifty is expected to face resistance at 22,800-23,000 levels in the coming sessions, with support at 22,500-22,400 levels.
As per the weekly options data, the maximum Call open interest was seen at 23,000 strike, followed by 23,500 and 22,800 strikes, with maximum writing at 23,000 strike, then 22,800 strike, while on the Put side, the 22,500 strike owned the maximum open interest, followed by 22,000 strike and 22,400 strike, with maximum writing at 22,500 strike, then 22,600 strike.
Bank Nifty
The Bank Nifty staged stellar performance, tracking rally in ICICI Bank, SBI, and Axis Bank. The index ended at record closing high of 49,424, surging 1,223 points or 2.54 percent, the biggest single day rally since December 4, 2023, and formed robust bullish candlestick pattern on the daily charts with above average volumes ahead of weekly F&O expiry.
"Overall, the trend is positive, and the next immediate hurdle is placed at 49,900 – 50,000. Support base shifts higher to 48,800 – 48,900 zone," Jatin Gedia said.
The volatility also spiked significantly but still below 13-14 levels. India VIX, the fear index, rallied 11.99 percent to 12.24, from 10.93 levels.
Meanwhile, the broader markets extended uptrend for seventh consecutive session and ended at new closing highs. The Nifty Midcap 100 and Smallcap 100 indices gained 0.4 percent and 0.2 percent, respectively.
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