Nifty holds above 23,310 support, with resistance at 23,740-23,860. Analysts highlight strong bullish breakout signalling strength, but budget-day volatility remains key. The undertone stays positive, with 23,400 acting as crucial downside support, as per analysts.
From a technical perspective, Nifty crossed its short-term hurdle of 23,430 and formed a strong bullish candle on the daily chart, indicating strength, according to Hrishikesh Yedve, AVP technical and derivatives research at Asit C Mehta Investment Intermediates Ltd. “The index also sustained above its 21-Day Simple Moving Average or 21-DSMA, at 23,310, making it an immediate support level, while trendline resistance at 23,800 will act as a key hurdle,” he said.
With a strong bullish candle, the index has confirmed its falling wedge formation breakout but with the Union Budget announcement tomorrow, there could be high volatility, according to Aditya Gaggar, director of Progressive Shares. “The undertone will remain positive with the downside being protected at 23,400, while on the higher side, 23,740-23,860 will be considered as a strong resistance zone,” he said.
The Bank Nifty index settled positively at 49,587. Yedve noted the technical front; the index formed a green candle, indicating strength but is nearing a major hurdle at the 49,650-49,700 zone. “If it sustains above this level, a rally toward 50,500 could follow. Hence, a breakout above 49,700 is crucial for further upside. On the downside, 21-DSMA is placed near the 49,100 level, which will act as key support for the index,” he said.
