Nifty Hits Resistance at 24,600 While Bank Nifty Surges to Record Highs

Image Source : Business Standard

Indian markets witnessed a mixed trend this week as Nifty faced strong resistance at 24,600, while Bank Nifty soared to a new peak with a 7 percent rally. Despite geopolitical tensions and global uncertainties, investor sentiment remained upbeat, supported by foreign institutional inflows and robust domestic fundamentals.

Market experts highlighted that Nifty is likely to consolidate between 23,800 and 24,600 in the near term, with traders closely watching key support and resistance levels. The index initially surged to an intraday high of 24,589 but later slipped to 24,238 due to aggressive selling pressure, reflecting heightened volatility.

Bank Nifty, on the other hand, outperformed broader indices, driven by strong earnings from private and PSU banks. Analysts believe that the banking sector’s resilience, coupled with improving credit growth, will continue to support the index’s upward trajectory.

Sectoral trends showed strength in oil and gas, financial services, and IT stocks, while consumer durables, metals, and realty sectors witnessed some weakness. Defense stocks like Paras Defense and BEL remained in focus amid ongoing geopolitical tensions.

With trade war concerns between the US and China easing and foreign institutional investors maintaining a positive outlook, market participants are optimistic about further gains. However, analysts caution that profit booking at higher levels could lead to short-term corrections.

Sources: Economic Times, Moneycontrol.