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The benchmark indices continued to trend upward for the third consecutive session on April 3, with moderate gains supported by the banking and financial services, auto, and pharma sectors.
The BSE Sensex rose by 115 points to close at 59,106, while the Nifty50 climbed 38 points to 17,398, and formed a small-bodied bearish candle with a long lower shadow, indicating that declines are being bought.
Short-term trend analysis
Following a positive start, the Nifty remained mostly range-bound as traders preferred to remain lean during the truncated week.
However, the short-term trend remains positive as the Nifty closed above the support level of 17,200. The bulls are likely to have the upper hand as long as the Nifty remains above 17,200.
On the higher end, 17,500 is expected to act as crucial resistance for the Nifty, and a decisive move above 17,500 may induce a strong directional upmove.
Broader market trends
The broader markets followed the same trend with the Nifty Midcap 100 and Smallcap 100 indices rising by 0.4 percent and 0.7 percent, respectively.
The India VIX, the fear index, fell by 2.7 percent to 12.59 levels, playing a supporting role for bulls.
Support and resistance levels on Nifty
The pivot charts indicate that the Nifty may get support at 17,336, followed by 17,308 and 17,264. If the index advances, 17,424 is the initial key resistance level to watch out for, followed by 17,451 and 17,495.
Nifty Bank performance
The Bank Nifty climbed further by 204 points to 40,813 and formed a bullish candlestick pattern on the daily timeframe with a long lower shadow indicating buying was seen at lower levels.
The trend is likely to remain positive as long as the index sustains above 40,000. On the higher end, immediate resistance is visible at 41,000, and above 41,000, the index may move towards 42,000 over the short term.
Call and put options data
The maximum Call open interest (OI) was at 17,700 strike, with 92.91 lakh contracts, which is expected to be a crucial level for the Nifty in the coming sessions.
The maximum put open interest was at 17,000 strike, with 89.94 lakh contracts, which is expected to act as support in the coming session.
Stocks in the news
IndusInd Bank reported net advances of Rs 2.89 lakh crore for the quarter ended March FY23, up 21 percent YoY and 6 percent QoQ.
South Indian Bank reported a 16.65 percent YoY growth in gross advances at Rs 72,107 crore, while total deposits grew by 2.82 percent YoY to Rs 91,652 crore.
NBCC (India) received a work order worth Rs 448.02 crore for the construction of a road in Mizoram, while RailTel Corporation of India received a work order worth Rs 76.10 crore from Bihar State Electronics.