Stock market recap: Nifty 50 rebounded sharply on Tuesday, gaining 155.40 points (0.68%) to close at 23,123.65, marking its fourth consecutive session of gains. The index opened weak, falling more than 120 points and slipping nearly 1% amid concerns about escalating US-Iran tensions and rising crude oil prices. However, sentiment improved later in the session following reports of a potential peace plan, triggering a strong recovery.
Sectoral gains were led by IT stocks, which surged 2.5% (including Wipro and TCS), along with notable strength in the metal and realty sectors.
Nifty 50 opened on a weak note at 22,838.70, tracking negative global cues and geopolitical concerns. The index initially slipped further to an intraday low of 22,719.30, reflecting early selling pressure. However, strong buying interest emerged from lower levels, resulting in a steady recovery throughout the session. The index eventually touched an intraday high of 23,153.85 before closing near the day’s high at 23,123.65, gaining 155.40 points (+0.68%).
The formation of a strong bullish candle after a gap-down opening indicates demand at lower levels and short-covering activity. This price behavior suggests improving sentiment, though sustainability will depend on follow-through buying.
The RSI is currently positioned around 43.46, recovering from oversold territory but still below the neutral 50 mark, indicating improving yet weak momentum. The MACD remains in negative territory. However, a narrowing histogram and potential bullish crossover signal are early signs of momentum reversal.
While these indicators hint at a possible short-term recovery, they have not yet confirmed a strong trend reversal. Sustained improvement in RSI above 50 and a decisive MACD crossover will be critical in validating strengthening momentum and reducing downside risks.
According to O’Neil’s methodology of market direction, the Indian equity market transitioned to a “Downtrend” from a “Rally Attempt”.
Immediate support for the Nifty 50 is placed near 22,700–22,500, followed by a stronger base around 22,200. On the upside, resistance is at 23,300, with a more significant hurdle near 23,500–23,600, close to short-term moving averages. In the near term, the index may witness a relief rally supported by short covering and improving sentiment. However, global cues, such as crude oil volatility and geopolitical developments, remain key risks. A decisive move above resistance levels could trigger further upside, while failure may lead to renewed consolidation.
Nifty Bank opened slightly positive at 52,258.70 and saw mild buying interest during the session. It moved higher to touch an intraday high of 52,778.20, while the intraday low was recorded at 51,868.45. Despite some volatility, the index managed to sustain gains and closed at 52,716.25, up 107.15 points (+0.20%).
The formation of a modest bullish candle indicates a recovery from lower levels, supported by selective buying in heavyweight banking stocks. However, the recovery remains gradual, suggesting cautious participation rather than aggressive accumulation. Sustained strength above recent highs will be crucial to confirm a stronger directional move.
The RSI is currently placed around 40.99, indicating a recovery from oversold levels but still below the neutral 50 mark, suggesting weak underlying momentum. The MACD remains in negative territory, though the histogram is narrowing, suggesting a possible early-stage bullish crossover. While momentum indicators are showing signs of stabilization, they have not yet confirmed a trend reversal. A sustained move in RSI above 50, along with a decisive MACD crossover, will be key to validating improving momentum and strengthening bullish conviction in the near term.
Immediate support for Nifty Bank is seen around 51,800–52,000, with a stronger base near 49,900. On the upside, resistance is placed at 53,200, followed by a crucial hurdle near 54,000, aligned with key moving averages. In the near term, the index may continue its recovery phase, supported by short covering and improving sentiment in financial stocks. However, global cues, particularly crude oil volatility and geopolitical developments, remain key risks. A sustained breakout above resistance could trigger further upside, while failure to hold support may lead to renewed selling pressure.
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