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On April 6, the Indian market closed higher for the fifth consecutive session after the Reserve Bank of India surprised the Street by leaving interest rates unchanged and raising the FY24 growth forecast to 6.5 percent from 6.4 percent. Auto, financial services, metal, pharma, and oil & gas stocks helped the market close higher. The Sensex rose 144 points to 59,833, while the Nifty climbed over 40 points to end at 17,599 and formed a bullish candlestick on the daily charts.
Technical Analysis
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, “The Nifty is currently placed at the important resistance of the previous opening downside gap of March 10 around 17,600 levels. The Nifty on the weekly chart formed a reasonable positive candle for the second consecutive week and is placed at the crucial hurdle of down sloping trend line around 17,600 levels.”
The near-term trend is positive. The Nifty can see consolidation before decisively rising to 17,600-17,700. The immediate support is at 17,500.
Broader Market Performance
The broader market outperformed the benchmarks, as breadth remained positive for yet another session. The Nifty midcap 100 index was up six-tenths of a percent, and the smallcap 100 index rose 0.8 percent.
Key Support and Resistance Levels on Nifty
The pivot charts indicate that the Nifty may get support at 17,528 followed by 17,496 and 17,444. If the index advances, 17,632 is the initial key resistance level to watch out for followed by 17,664 and 17,716.
Nifty Bank
The Bank Nifty underperformed the Nifty, advancing just 0.1 percent or 42 points to 41,041 and formed a small-bodied bullish candlestick with a long upper and a lower shadow on the daily charts.
“The index is now trading around the next resistance zone of 41,000, and if we sustain above this in the upcoming week, we expect the rally to continue higher towards the 42,000-mark,” Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities, said.
The lower-end support is visible at 40,600-40,500, which will act as a cushion for the bulls.
The Bank Nifty may take support at 40,872 followed by 40,765 and 40,591. Key resistance levels are expected to be 41,219, then 41,326, and 41,500.
Call Options Data
On the weekly options front, the maximum Call open interest (OI) was at 17,600 strikes, with 96.65 lakh contracts, which is expected to be a crucial level for the Nifty in the coming sessions.
This was followed by 17,700 strikes, comprising 92.76 lakh contracts, and 17,800 strikes, with more than 47.86 lakh contracts.
Call writing was seen at 17,600 strikes, which added 12.8 lakh contracts, followed by 18,400 strikes, which accumulated 7.26 lakh contracts.
Call unwinding was at 17,700 strikes, which shed 45.51 lakh contracts, followed by 17,500 strikes, which shed 44.28 lakh contracts, and then 17,800 strikes, which shed 30.76 lakh contracts.
Put option data
The maximum Put open interest was at 17,500 strike, with 87.18 lakh contracts, which is expected to act as support in the coming session.
This was followed by the 17,600 strike, comprising 76.14 lakh contracts, and the 17,000 strike where there were 63.02 lakh contracts.
Put writing was seen at 17,600 strike, which added 42.18 lakh contracts, followed by 17,900 strike, which added 4,650 contracts, and 17,800 strike, which added 3,050 contracts.
We have seen Put unwinding at 17,300 strike, which shed 63.24 lakh contracts, followed by 17,400 strike, which shed 57.59 lakh contracts, and 17,500 strike, which shed 48.96 lakh contracts.
Overall, the market seems to be consolidating around the 17,600 levels on the Nifty, and the key support and resistance levels mentioned in the pivot charts will play an important role in determining the direction of the market in the coming sessions.
Investors should keep a close eye on the support and resistance levels and monitor any major developments in the global markets, which could impact the Indian markets.
Conclusion:
In conclusion, the Indian stock market closed higher for the fifth consecutive session on April 6, driven by positive sentiment following the RBI‘s decision to leave interest rates unchanged and raise the FY24 growth forecast.
The market was also supported by gains in auto, financial services, metal, pharma, and oil & gas stocks, while the Nifty midcap 100 and smallcap 100 indexes outperformed the benchmarks.