The foreign institutional investors finally bought into the cash market after almost a month. Now, the question strikes, will the Nifty 50 be able to cross the 23,000 level this week? Market participants believe that 23,000 is a key resistance level. However, the markets are likely to incline on the back of positive global cues such as the Bank of Japan holding key lending rates unchanged and value buying at lower levels.
The bulls are undoubtedly back in the field and Tuesday’s closing marks a strong breakout stage for further upside. The alignment between the benchmark index and banking majors supports further recovery, with the Nifty 50 eyeing the 23,100 level, said Ajit Mishra, Senior Vice President of Research at Religare Broking.
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The domestic markets are expected to get a push from positive global cues. Bank of Japan’s monetary policy kept the key interest rates unchanged at 0.50% as investors expected. “The market will focus on the Fed’s updated economic projections and commentary for clues on the path ahead. We expect the market recovery to continue in the near term on the back of positive global cues and value buying at lower levels,” said Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services.
Jatin Gedia a Technical Research Analyst at Mirae Asset Sharekhan said that over the next few trading sessions, the expectations are that the short-covering rally will continue taking the nifty towards 22,800–23,000 from the short-term perspective. “The 20-day moving average (22561) is the immediate hurdle and a close above it shall add more strength to this current upmove,” said Gedia.
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Another analyst Shrikant Chouhan, Head of Equity Research at Kotak Securities, iterated that markets are looking bullish in the short term. “Additionally, the market is currently trading comfortably above the 20-day SMA (Simple Moving Average), which also indicates a further uptrend from current levels,” said Chouhan.
However, “intense call writing at 23,000 signals a formidable resistance zone. Traders should brace for muted downside reactions and robust buying pressure on the higher side,” said Samco Securities.
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