Nifty 50 Extends Upward Journey, Fills Bearish Gap

The Nifty 50 continued its upward trajectory for a second consecutive session, closing 172 points (0.74 percent) higher at 23,581. The index filled the bearish gap of March 13, despite Brent crude oil prices sustaining above the $100-a-barrel mark.

Market Analysis

The relief rally, which started from the lows of 22,955, has extended with the Nifty 50 rallying over 600 points in two consecutive sessions. The index opened higher by nearly 100 points but drifted lower during the mid-session to hit the day's low of 23,347. However, it regained strength in the afternoon, climbing to 23,657 before closing.

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Technical Indicators

The Nifty 50 formed a bullish candle with an upper and long lower shadow on the daily timeframe, indicating the formation of a high-wave-type candle pattern. The RSI inched closer to the signal line at 33.18, and the Stochastic RSI maintained a positive crossover for another session. The MACD sustained well below the signal and zero lines, while the histogram's weakness faded further.

Key Levels

The immediate support for the Nifty 50 is at 23,350, followed by the crucial support at 23,000. The index needs to deliver a sustained close above 23,600 in the next few sessions for a move toward the 23,800-24,000 zone.

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Bank Nifty

The Bank Nifty approached the 55,000 zone intraday before closing at 54,876, up 463 points (0.85 percent). The index formed a bullish candle with a minor upper and long lower shadow on the daily charts, indicating strong buying at lower levels. The RSI has moved into a bullish crossover on the hourly chart, indicating improving momentum.

Outlook

The Nifty 50 remains well below all key moving averages, and all these averages are sloping downward. The weekly options data suggests that resistance for the Nifty 50 is placed at 24,000, with support at 23,000. A decisive move is likely only after a breakout on either side of this range.