The Indian stock market experienced a sharp rise on Tuesday, with widespread buying driving the surge. The Sensex jumped by 1,131.31 points, or 1.53%, to close at 75,301.26. Meanwhile, the Nifty index rose by 325.55 points, or 1.45%, ending at 22,834.30.
Nifty Support and Resistance Levels
Experts suggest that Nifty has broken out above the key 22,700 level, signaling positive sentiment in the near term. They expect Nifty to move towards a short-term target of 23,000. If the index surpasses 23,000, it could then rise to 23,400. Immediate support is seen in the 22,500 to 22,600 range.
Nifty Chart and Technical Analysis
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that the daily chart of Nifty shows a long bullish candle. The index has surpassed the crucial resistance of 22,700-22,800 and closed higher.
“Technically, this chart pattern indicates a clear breakout above important resistance levels, which is a positive sign,” he explained. Shetti also mentioned that the short-term trend for Nifty looks positive.
“Nifty could target the next resistance at 23,100-23,200 in the coming sessions, with immediate support at 22,700,” he added.
RSI Indicator and Short-Term Momentum
Rupak De, Senior Technical Analyst at LKP Securities, highlighted that Nifty has broken out from a seven-session consolidation, leading to a strong upward move. Nifty has moved above the key 21 EMA (Exponential Moving Average) on the daily chart, signaling a bullish short-term trend.
“Nifty’s RSI is in a bullish crossover and rising, which supports the positive momentum. In the short term, Nifty may head toward 23,150, with support at 22,700,” he said.
Nifty Above 20DEMA
Devarsh Vakil, Head of Prime Research at HDFC Securities, pointed out that Nifty has surpassed the 20-day SMA (Simple Moving Average), which was around 22,550. The previous resistance of 22,700 is now expected to serve as strong support. On the upside, immediate resistance for Nifty is near 23,000, followed by 23,200.
Outlook for Nifty
Rajesh Bhosale, Equity Technical Analyst at Angel One, explained that Nifty has closed above the 20 DEMA, breaking through the resistance zone of 22,650-22,700.
“This breakout confirms the formation of a structural bottom for the index in the near term. If this momentum continues, Nifty will likely retest 23,000, aligning with the 50 DEMA and a dynamic trendline resistance. A breakout above 23,000 will drive the index towards the 200 DSMA at 23,400. On the downside, the 22,650-22,700 range will now act as support,” he added.
Conclusion
The Indian stock market is showing bullish momentum, and Nifty is expected to continue this positive trend. If Nifty surpasses the 23,000 mark, further upward movement is likely. Investors are encouraged to focus on key support and resistance levels for making informed decisions.
