Indian equity markets extended their winning streak for a third consecutive session on Tuesday, with benchmark indices closing higher amid improving geopolitical sentiment surrounding the West Asia conflict and sustained investor optimism.
Market experts believe the positive momentum could continue in the coming sessions, supported by easing crude oil prices, improving foreign institutional investor (FII) participation and reduced geopolitical uncertainty.
Nifty Likely To Maintain Upward Momentum
According to Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services, Indian equities remain well-positioned for gradual gains.
“Indian equities are expected to maintain their gradual positive momentum, supported by improving geopolitical developments, a revival in foreign institutional participation and a further fall in crude oil prices,” Khemka said.
From a technical perspective, analysts are closely watching the 24,100 mark on the Nifty 50, which is emerging as a key resistance level.
The index currently faces immediate resistance in the 24,080-24,100 zone. A decisive breakout above this range could trigger fresh buying activity and open the door for higher targets.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, believes a sustained move above 24,100 could strengthen bullish sentiment further.
“A sustained move above the 24,100 mark could trigger fresh buying interest, paving the way for an upside rally towards 24,250, followed by 24,400 in the short term,” Shah noted.
On the downside, analysts identify the 23,900-23,880 zone as a critical support area. Any breach below these levels could alter the near-term outlook.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, advised traders to remain cautious if support levels fail to hold.
According to him, traders should consider exiting long positions if the Nifty slips below the identified support zone.
Nifty Bank Remains Range-Bound
While the broader market showed strength, the Nifty Bank index traded within a narrow range during Tuesday’s session.
Despite the lack of a clear directional move, the banking index continues to trade above its short-term and long-term moving averages, indicating that the broader trend remains positive.
Shah pointed out that the index formed a small-bodied candlestick pattern with shadows on both sides, reflecting indecision among market participants.
“On the daily scale, it has formed a small body candle with shadows on either side, which shows indecisiveness,” he said.
Going forward, the immediate resistance zone for Nifty Bank is seen between 57,700 and 57,800.
On the downside, the 56,800-56,700 range remains a crucial support area. Analysts believe maintaining levels above this zone will be important for preserving the index’s positive bias.
Benchmark Indices Extend Winning Run
Indian markets ended the session on a strong note amid expiry-related activity in the futures and options segment.
The NSE Nifty 50 gained 135.25 points, or 0.57%, to settle at 23,989.15.
Meanwhile, the BSE Sensex advanced 544.15 points, or 0.71%, to close at 76,808.48.
The rally was driven by improving investor confidence following positive geopolitical developments, lower crude oil prices and expectations of stronger foreign capital inflows into Indian equities.
With the Nifty now approaching the psychologically important 24,100 level, market participants will closely monitor whether the benchmark can sustain its momentum and trigger the next leg of the rally.