The Indian stock market erased some of the previous day’s losses and ended higher after NDA allies pledged support for the alliance to form a government for the third term. The Nifty 50 index gained 735 points, closing at 22,620, while the BSE Sensex surged 1,303 points to finish at 74,382. The Bank Nifty index ended 2,126 points higher at 49,054. In the broader market, the mid-cap index outperformed the frontline Indian indices, with the advance-decline ratio rising sharply to 3.49:1.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, noted that the Nifty 50 index has moved above the 50-EMA zone of 22,400. She added that a decisive breach above 22,900 by the 50-stock index could further improve the Indian stock market’s bias and sentiment. Parekh emphasized that the Bank Nifty index needs to sustain above the significant 50-EMA level of 48,150 to maintain a positive bias.
On the outlook for Nifty, Parekh mentioned, “Nifty, after witnessing heavy erosion a day before, bulls regained some lost strength to gain 735 points, ending near the 22,600 zone, moving above the significant 50-EMA level of 22,400. The index has support near the 21,800 level, and a decisive breach above 22,900 could further improve bias and sentiment.”
Regarding the Bank Nifty, she said, “The Bank Nifty gained more than 4% to move past the 49,000 zone with decent recovery witnessed. With support near the 47,300 level, it needs to sustain above the 50-EMA level of 48,150 to maintain a positive bias. A decisive breach above the 49,700 zone could confirm further upside potential, provided there are no unexpected political developments.”
Parekh added that Nifty’s immediate support is at 22,450, while resistance is at 22,900. The Bank Nifty’s daily range is expected to be between 48,200 and 50,300.