Nifty extends rally to seventh session, analysts eye resistance at 24,800
The Nifty 50 index closed above 24,600 for a seventh consecutive day, with analysts noting support near 23,600-23,800 and resistance at 24,800, while the broader market showed mixed breadth.
The Nifty 50 index rose for a seventh straight session, trading above the 24,600 level on November 6. Analysts said the index will remain bullish if it stays above Thursday’s gap area of 23,960-24,296, which could lift it toward the August high of 24,774. A sustained lower high and lower low on the daily chart, or a close below the gap area, would signal a pause in the rally.
Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, noted that short-term support has moved higher to the 23,600-23,800 range, where the 200-day EMA and the week’s breakout area converge, and that dips in this zone could be buying opportunities. Axis Securities placed resistance at 24,800, with the psychological 25,000 mark as the next hurdle.
The Nifty 50 and Sensex rose 2.4% on Thursday, reaching 24,536.6 and 79,310.01 respectively, marking an eight-percent gain over six sessions, the longest winning streak this year. At 12:27 pm, the Sensex was up 730.59 points (0.92%) at 80,040.60 and the Nifty was up 158.90 points (0.65%) at 24,695.50, with about 1,250 stocks advancing, 2,595 declining and 167 unchanged.
Hemang Gor, Senior Research Analyst at Axis Direct, warned that despite a cautious technical bias due to an overbought RSI, staying below 24,800 keeps the market subdued, with support at 24,300 and a break potentially testing 24,000. He added that reclaiming 24,700 could target 25,000.
Shrikant Chouhan, Head of Equity Research at Kotak Neo, said day traders should watch the 24,350 level as key support; as long as the market remains above it, bullish sentiment may continue, with the rally potentially extending to 24,700-24,800. A fall below could see correction toward 24,250-24,150. He recommended buying on dips between 24,300-24,100.
Siddhartha Khemka, head of research for wealth management at Motilal Oswal, said Indian equities are likely to maintain their positive trajectory, citing the U.S. midterm election outcome as a factor boosting global sentiment, easing trade-tariff concerns, weakening the U.S. dollar and lowering the 10-year U.S. Treasury yield.