The Indian equity indices closed on a positive note after trading in the red for the whole day. The Nifty 50 surged almost 50 points or 0.22% to finally settle the day’s trading at 22,104.05. Sensex jumped 112 points or 0.15% to close the day’s trading at 72,776.13. HDFC Bank, ICICI Bank, TCS, Asian Paints, and Cipla moved Nifty 50 higher, while Cipla, Asian Paints, Adani Ports, Divi’s Lab, and Adani Enterprises were the gainers. The volatility index shot up 12% indicating a lot of volatility in the markets ahead. 

Sectoral indices settle higher

The Nifty Midcap 100 closed 203.10 points or 0.41% to finish the session at 49,735.40. Similarly, Nifty Bank closed in the green, up 333 points or 0.70% at 47,754.10. 

On the sectoral front, pharma, healthcare, and metal stocks lead the indices higher. In the broader market, smallcap stocks closed in the red down, while midcap flipped the trend and closed higher. 

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“Despite the persistent rise in the volatility index, the Nifty found support at the critical 21,800 level. Anticipated stability in banking majors and select heavyweights in sectors such as IT and energy may foster further upward movement, although breaching the 22,300-22,400 range could prove challenging. Given this scenario, participants are advised to adjust their positions cautiously and refrain from overly aggressive trading strategies,” said Ajit Mishra Senior Vice President of Research at Religare Broking.

Nifty’s Technical Side

The Nifty has formed a hammer pattern on the daily chart, indicating a potential bullish reversal following a correction. Additionally, the stock has found support around the previous swing low on the daily timeframe. “However, the index’s recovery may encounter resistance in the 22150-22200 zone, and only a decisive move above 22200 could trigger a stronger rally in the market. On the lower end, support is situated at 21950,” said Rupak De, Senior Technical Analyst at LKP Securities.

Bank Nifty 

The Bank Nifty index saw a strong recovery from lower levels and managed to hold onto its support at the 100-day exponential moving average (EMA). “There’s a potential for a pullback towards its 20-day moving average (DMA), positioned at 48,200. As long as the index maintains the support level of 47,200 on the downside, where bullish activity is evident, the index remains in a buy mode,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Affect on Rupee

On Monday, the Indian currency, the rupee, traded in a narrow range between 83.51 and 83.54, “characterised by a lack of significant trends as the RBI maintains stability through measures to curb speculative trading and with supportive domestic economic data. The rupee’s trend is expected to continue within the range of 83.45 to 83.65. However, a breach below 83.65 could lead to a decline towards 83.75-83.80, especially if the dollar index manages to surpass $105.50,” said Jateen Trivedi, Vice President, Research Analyst of Commodity and Currency at LKP Securities.