Nifty sits in crucial resistance zone, will bulls continue to rally? 5 things to know before opening bell

Dalal Street benchmarks continued to move higher on Tuesday as bulls dominate Dalal Street momentum. S&P BSE Sensex added 379 points or 0.64% to settle at 59,842 points while the NSE Nifty 50 index soared 127 points or 0.72% to close at 17,825. India VIX the volatility gauge also closed with gains along with the Bank Nifty index, which was up 0.5%. Ahead of Wednesday’s trade, SGX Nifty was up with marginal gains, suggesting a flat to positive start to the day’s trade. Global cues were mixed after Wall Street stock indices closed in separate directions on Tuesday. 

Global watch: Dow Jones gained 0.71% while S&P 500 was up 0.19% on Tuesday on Wall Street. However, the NASDAQ index closed 0.19% lower. Among Asian stock markets, Shanghai Composite along with KSPI and KOSDAQ were down in the red. On the other hand, Hang Seng, Nikkei 225, and TOPIX zoomed higher. 

What do the charts say: The Nifty has formed a small positive candle with gap up opening on the daily chart, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Many opening upside gaps remains unfilled during upward journey of recent past and this signal continuation of upmove in the market. The Nifty is now placed at the edge of significant overhead resistance of down sloping trend line (down trend line connected from the important lower tops) around 17850-17900 levels. This is positive indication and suggests that the hurdle could be taken out on the upside soon,” he added. 

Levels to watch out: Ruchit Jain of 5Paisa said that the intraday stock-specific momentum has been buzzing and until there’s any reversal, traders should look for such stock-specific opportunities and trade with proper risk management. “The immediate support for Nifty has now shifted higher to 17720 followed by 17600 while resistances are seen around 17870 and 18000,” he added. Nagaraj Shetti said Nifty is placed at the crucial resistance of 17900-18000 levels and a sustainable upside above this hurdle could open the next upside target of around 18500-18600 levels in the near term. “Immediate support is placed at 17650 levels.”  

Also Read: Better salary hikes coming in 2023: Indian firms could hand out highest pay raise in APAC as business grows

FII and DII trades: Foreign Institutional Investors were net buyers once again on Dalal Street, FIIs pumped in Rs 1,376 crore on Tuesday. Domestic investors were net sellers, pulling out Rs 136 crore. 

IPO watch: Syrma SGS Technology IPO was subscribed 0.92 times on the second day of bidding. Retail investors have oversubscribed their portion of the issue. The IPO subscription window closes tomorrow.