Nifty faces stiff resistance at 22,520 and 22,720; Breakout could propel index to 22,800
Nifty faces stiff resistance at 22,520 and 22,720; Breakout could propel index to 22,800
The NSE Nifty 50 surged 254.65 points (1.15%) to close at 22,337.30 on Wednesday, while the BSE Sensex climbed 740.30 points (1.01%) to settle at 73,730.23. However, analysts caution that key resistance zones at 22,520 and 22,720 may challenge the ongoing bullish momentum.
Technical Outlook
Market experts note that Nifty has left bearish gaps between 22,450–22,514 and 22,668–22,720, which could act as strong short-term hurdles. The index formed a follow-up bullish candle after a bullish belt-hold candlestick pattern, signaling continued strength, according to Hrishikesh Yedve, Assistant Vice President of Technical and Derivatives Research at Asit C Mehta Investment Intermediates Ltd.
"On the upside, 22,520 and 22,720 will serve as key resistance levels. Traders should consider buying near support zones and booking profits near these levels," Yedve suggested.
Key Levels to Watch
A decisive breakout above 22,500 could drive the index towards 22,800, while a slip below 22,300 may see Nifty testing support at 22,000 and 21,800, according to Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity. "Nifty's movement remains conditional, depending on price action around these crucial levels," he added.
Bank Nifty Outlook
The Bank Nifty index also formed a bullish candle on the daily chart, indicating strength. Yedve noted that resistance levels are around 48,600–48,660, with a breakout above 48,660 potentially pushing the index towards 49,000. Meanwhile, 47,840 remains a key support level on the downside.
Market Recap
Wednesday’s rally put an end to the longest losing streak in 29 years. The Nifty 50 and Sensex rebounded strongly, bringing relief to investors after a prolonged downturn.
Forex Market Update
The Indian rupee strengthened by 31 paise to close at 86.86 against the US dollar, benefiting from a continued decline in crude oil prices. However, concerns remain over the escalating trade tensions triggered by US President Donald Trump’s recent policies.
