However, profit-booking at higher levels led to a partial retreat from the day's high, with the Sensex closing at 72,085, down 0.61%, and the Nifty closing at 21,853, down 0.72%.
Positive global cues and initial gains were offset by profit-booking, resulting in the Sensex closing 1,003 points lower than the day's high, and the Nifty shedding 273 points from its peak.
Nifty Bank index turned negative, losing 0.5% after reaching an intraday high of 46,892 at 45,970. Maintaining the current Nifty level is crucial, as a failure could lead to a sideways trend. Sustainability above 22,150 is deemed necessary for a march towards 22,500+. Banking majors' consistent participation is critical for a steady trend; otherwise, the market may continue in a range-bound pattern.
Although Nifty surpassed 22,000, it formed a double top on the hourly chart, indicating caution. A decisive breakout above 22,125 is needed for confirmation of a bullish trend resumption. Conversely, a break below the support level at 21,500 may indicate bearish momentum. A breakout above 22,150 could propel Nifty towards 22,500 and beyond.
Daily and hourly momentum indicators present a divergent signal, and prices remain within a range, with Bollinger bands contracting, signaling range-bound price action. The consolidation is expected to persist, with stock-specific actions and sector rotations driving market movements. Key support levels are identified at 21,660 – 21,600, while an immediate hurdle zone is placed at 22,100 - 22,150.
Bank Nifty faced selling pressure around the 46,900 – 47,000 zone, aligning with the 61.82% Fibonacci retracement level. The short-term perspective suggests a consolidation phase for Bank Nifty in the range of 47,000 – 45,500.
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