Technical View: Nifty bounces back to close above 23,150; immediate support at 23,000

Market Today

In yet another volatile session the Nifty50 index erased some of the previous session losses and manages to close near the day's high amid buying seen in the Information Technology, pharma and private banking names.

The index opened marginally higher and extended the gains in the initial hours but mid-day profit booking erased all the gains and dragged the index below 23,000. However, the index reversed the losses in the last hour to close comfortably above 23,150 level.

At close, the Nifty was up 130.70 points or 0.57 percent at 23,155.35.

Wipro, Infosys, TCS, Tech Mahindra, Sun Pharma are among the top gainers on the Nifty, while losers are Bharat Electronics, Tata Motors, Trent, Axis Bank and Power Grid.

Nifty Midcap and Smallcap indices went down 1.5 percent each.

On the sectoral front, the Nifty IT index rose 2 percent, while pharma and private bank indices up 0.5 percent each. On the other hand, realty index shed 4.5 percent, while media, metal, energy, consumer durables, oil & gas, PSU bank down 0.5-1.5 percent.

"The market faced persistent selling pressure, particularly in Mid and Smallcaps, which dragged the Index lower to retest the previous day's lows. However, after HDFC Bank's Q3 earnings report, there was a minor recovery, aided by gains in IT stocks, which pushed the Index higher. A broad-based uptick was observed, helping the Index finish the session at 23,155.35 with gains of 130.70 points. While IT stocks and the Pharma sector outperformed, Realty stocks fell sharply by over 4.5%. The broader market also saw a recovery, but the Mid and Smallcaps continued to underperform," said Aditya Gaggar Director of Progressive Shares.

"The daily chart indicates a Hammer candlestick pattern, with a potential positive divergence in the RSI. A sustained move above 23,400 could confirm this divergence while a close below 23,000 could lead to a drop toward 22,800. The 23,000 level will serve as immediate support, while resistance appears to be capped at 23,280," he added.

The Bank Nifty index also remain volatile in the first half however recovered 650 points from day's low and closed near day's high at 48,724.40, up 0.32 percent.

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