Mumbai: The domestic benchmark indices opened positively on Wednesday, driven by strong global cues.
Following that, Nifty opened with a gap up and witnessed profit booking, settling the day on a marginally negative note at 22,201.
Technically, on the daily scale, the index has encountered resistance near the 22,300 levels, where the 21-Days exponential moving average (21-DEMA) is placed.
As long as the index remains below the 22,300 levels, we expect the index to consolidate in the range of 22,000-22,300. If the index sustains above 22,310, then the pullback rally might extend to 22,500 levels, noted Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
The Bank Nifty opened on a positive note but was unable to sustain at higher levels, resulting in profit booking and settling the day on a negative note at 47,687.
Technically, the index is still respecting a bullish engulfing candle, indicating strength.
As long as the index remains above 46,983, the bullish momentum will continue. On the upside, the 21-DEMA is placed near 48,060, which will serve as the first hurdle for the index, followed by 48,500, added Yedve.
