Technical view: Nifty's record rally continues, crosses 22,750 for first time; resistance at 22,740-22,770

Market Today

On the auspicious day of Gudi Padwa on April 9 , the Indian market climbed to fresh record high with the Nifty50 index crossing 22,750 for the first time with support from positive global cues.

The index continued the previous session rally and touched fresh record high of 22,768.40 in the opening session and remained positive in the first half. However, selling in the second half erased all the gains to close the session with minor losses.

Nifty ended 24.50 points, or 0.11 percent, lower at 22,641.80, from the previous close and formed a bearish candle on the daily chart.

"Nifty opened gap up today and witnessed selling pressure during the second half of the trading session which resulted into a marginal negative close for the index. On the daily charts we can observe that the Nifty has faced resistance at the upper end of the channel placed around 22,740 – 22,770," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

"The hourly momentum indicator has triggered a negative crossover which is sign of loss of momentum. Thus, we can expect some consolidation though the overall trend is still positive, and we expect the dips towards 22,600 – 22,580 to be bought into," he added.

Nifty Bank index opened 200 points higher and extended the gains as the day progress and inched closer to 49,000 mark.

The index had hit fresh record high of 48,960.75 but ended 0.31 percent higher at 48,730.55, falling 230 points from day's high.

"Bank Nifty also witnessed selling pressure during the second half though it managed to close the day in the green. Overall, trend remains positive and dips towards support zone 48,550 – 48,500 should be used as a buying opportunity. Overall, the immediate upside / hurdle is placed at 49,250 – 49,300," Gedia added.

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