Tech View: 23,500 key support for trend-following traders. Here’s how to trade on Wednesday
Following a strong start, Nifty remained within a range as the index formed another day of muted movement on the daily chart. For the last few days, Nifty has been moving sideways on an intraday basis, but eventually it has moved up above 23,500. The trend looks positive from here, with support placed at 23,300. A fall below 23,300 might induce selling pressure. On the higher end, the index might move towards 23,800.
Rupak De of LKP Securities highlighted the positive trend in Nifty, with support at 23,300 and a potential move towards 23,800. Traders are advised to watch for a fall below 23,300 as it could trigger selling pressure. The overall outlook remains positive, with the index showing signs of upward movement.
The Indian market touched record highs again, responding positively to the upcoming budget and global market trends. The Nifty Bank also rallied, with the next target seen at 51,000. The rupee traded strong against the dollar, while gold prices saw weakness after facing resistance at $2,325.
Overall, the market sentiment remains bullish, driven by strong economic growth, good corporate earnings, and sustained domestic flows. Investors are advised to focus on fairly valued largecaps, particularly in the banking and auto sectors.
In global markets, US stocks hit record highs, with the S&P 500 and Nasdaq reaching their highest closing levels ever. Oil prices also rose on a positive demand outlook and optimism regarding OPEC+ supply plans.
The London Stock Exchange reclaimed its position as Europe’s largest stock market, surpassing Paris amidst political turmoil in France. The ECB’s Vice President, Luis de Guindos, emphasized the importance of rate decisions aligning with macroeconomic projections.
Overall, the market outlook remains positive, with key support levels and potential upside targets for traders to watch. Stay tuned for more updates on market trends and trading opportunities.
