The has been trotting close to the 24,000 mark after back-to-back gains for three consecutive trading sessions this week. The revival in sentiment is visible even as the crude price-related worries and .
clawed back earlier losses, with Brent crude trading firmly above $103 per barrel. The conflict between the US and Iran has disrupted the Strait of Hormuz, a narrow passage through which 20% of the global crude oil passes.
The US-Israeli attacks against Iran and Tehran’s retaliatory strikes on energy and shipping assets across the region have added to the flare-up in crude prices. Brent is up 70% this year, and higher for longer crude prices can hurt Asian economies significantly, including India, which relies heavily on the for its oil imports.
Despite the lack of progress, the markets have rebounded. According to experts, investors are resorting to “opportunistic buying” after the recent sell-off. In the first two weeks of March, the Nifty 50 index had crashed 8% as the Middle East conflict.
“The rebound was broad-based, driven by a combination of short covering and value buying, with leadership from IT, realty, and auto sectors, alongside strength in mid- and small-cap stocks,” said Vinod Nair, Head of Research, Geojit Investments Limited.
Nifty 50 tech view: Is 24,000 on cards?
Technically, the daily RSI has reversed from the deep oversold zone, and currently it is in a bullish crossover, suggesting positive momentum, according to experts, with the possibility of the Nifty 50 index crossing the 24,000 mark.
During the day, the flagship index of the touched a high of 23,862, but failed to hold this level.
Vishnu Kant Upadhyay – AVP, Research Advisory – Master Capital Services Limited, said that the 23850 – 24000 zone continues to act as a strong resistance band. Historically, this range has repeatedly acted as both a key support and resistance area, making it technically significant.
Additionally, there is a heavy concentration of call writing around these levels is capping the upside and limiting the sustainability of the ongoing rally, he opined. In order for the Nifty 50 to gradually move towards 24,000, prices need to surpass the 23850 level convincingly. A rally to the 24200 -24300 zone is also likely, where the 21-day EMA is positioned, he said.
Echoing a positive view, Rupak De, Senior Technical Analyst at LKP Securities, said that on Monday, Nifty 50 closed with a piercing line pattern (bullish reversal pattern) on the daily timeframe, on Tuesday it closed breaking out of the falling channel on the hourly chart, and on Wednesday it closed above the 23.60% Fibonacci retracement.
“The sentiment is likely to remain positive with a possibility to rise towards 24250. While a support is placed at 23500, which is likely to remain a support for the short term,” he added.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.