Nifty Extends Uptrend, Consolidates Near 23,600-23,700 for Fifth Consecutive Day

Domestic Equity Markets End Marginally Higher Amid Volatility

The domestic equity markets experienced a volatile session on Wednesday, with benchmark indices settling marginally higher amid fag-end buying, as crude oil prices eased below USD 110 per barrel. Buying in blue-chip stock Reliance Industries also supported sentiment.

After a gap-down start, the Nifty recovered gradually through the session and ended near the day's high at 23,659, up 41 points or 0.17 percent. The index closed in the 23,600-23,700 range for the fifth straight trading session. The Sensex rose 117.54 points or 0.16 percent to close at 75,318.39. During the day, it fell 671.44 points or 0.89 percent to hit a low of 74,529.41.

The Nifty has shown an alternating pattern of one session of gains followed by one session of losses for the past five trading sessions. On Wednesday, the index opened 161 points lower, hit its intraday low in the first few minutes of trade, and then recovered sharply. It rebounded nearly 300 points from the day's low of 23,397 before settling at 23,659.

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Ajit Mishra, SVP – Research at Religare Broking, noted that the Nifty continues to trade below the crucial resistance zone of 23,800–24,000, indicating that the broader undertone remains cautious. However, rotational buying in select heavyweight stocks across sectors is helping limit the downside, with the index finding support in the 23,250–23,400 zone so far.

Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, identified the immediate support for Nifty as the 23,500–23,450 zone. A sustainable move below this level could extend weakness towards 23,300, followed by 23,150 in the short term. On the upside, immediate resistance is placed in the 23,800–23,850 zone, which also coincides with the 20-day EMA.

The initial weakness in domestic equities was driven by rising global bond yields, elevated crude oil prices, and continued geopolitical uncertainty over the US-Iran conflict. The rupee also weakened to a fresh record low against the US dollar, moving closer to the 97 level, while sustained foreign institutional outflows continued to weigh on sentiment.

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