Mumbai, April 8 The Nifty maintained its strength by staying above 22,500 throughout Monday, exceeding the previous all-time high of 22,619, said Rupak De, Senior Technical Analyst, LKP Securities.
"However, the index has reached near the upper band of the rising wedge, which might act as resistance in the short term. The index might consolidate within a range over the short term. On the lower end, support is placed at 22,500, below which the index might fall back into consolidation," De said.
While the Nifty closed 152.60 points or 0.68 per cent up at 22,666.30, the Sensex ended 494.28 points or 0.67 per cent higher at 74,742.50 on Monday.
Vinod Nair, Head of Research, Geojit Financial Services, said the buoyancy in sentiment continued, led by sectoral tailwinds and Q4 earnings growth expectations. The up-move was largely broad-based, with outperformance by auto, realty, oil & gas, and consumer discretionary, while IT was tepid owing to insipid Q4 growth expectations due to a slowdown in spending.
On the global front, after the release of robust US job data, investors are awaiting the release of US CPI data, ECB policy, and UK GDP data this week, he said.
Kunal Shah, Senior Technical and Derivative Analyst at LKP Securities, said the Bank Nifty exhibited indecision in the market with the formation of a doji candle on the daily chart, indicating a standoff between buyers and sellers at current levels.
However, the overall sentiment remains bullish, contingent upon the index maintaining support above 48,000, where substantial open interest in put options exists. To sustain the upward trajectory, the index must decisively breach the 48,700 mark, paving the way for further gains towards the 49,500 to 50,000 range.
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