BSE Sensex and Nifty 50 rose 2 percent on Wednesday, a day before the weekly F&O expired, thanks to buying index heavyweights like Infosys, RIL

BSE Sensex and NSE Nifty 50 ended in positive territory after a one-day blip. Benchmark indices rose 2 percent on Wednesday, a day before the end of the weekly F&O, on the back of buying index heavyweights such as Infosys, Reliance Industries Ltd (RIL), Housing Development Finance Corporation (HDFC) and HDFC Bank. The Sensex 30-share index ended 1,040 points to 56,817, while the NSE Nifty 50 index rose 312 points to 16,975.35. The broader markets performed in line with the first-line indices. S&P BSE MidCap rose 418 points, or 1.8 percent, to 23,573, while the S&P BSE SmallCap index added 1.5 percent, or 396 points, to close out trading at 27,384. Bank Nifty rose 2.07 percent. India VIX, the volatility index, fell 10 percent to end at 24.12 levels. Market participants will be looking closely at the outcome of the US Federal Reserve meeting.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The market seems to be emerging from the turbulent phase of recent weeks. As the conflict between Russia and Ukraine continues, other events such as cooling oil prices and the US Federal Reserve’s decision on the interest rate front and commentary about the pace of future rate hikes are being watched by investors. The trend reversal in recent sessions is also due to the market being in oversold territory for the past few weeks. Technically, on intraday charts, Nifty maintains a higher high and higher low formation and is now moving towards 17000 and 17200. We believe the current structure is likely to continue unless the index falls below the 16750-16700 levels. Above this level, the Nifty could rise to 17100-17200 levels. On the other hand, traders may prefer to exercise caution if the index dips below 16750 and below that, the chances of hitting 16700-16600 would be higher.

Sahaj Agrawal, Head of Research Derivatives, Kotak Securities

Nifty has made a strong recovery with a combination of value and momentum. We expect the upward trend to continue in the medium term. The March series expects limited downside with resistance at 17200-17300 levels; on the downside, support is seen at 16500-16600 levels. Buying on Dips is recommended with a focus on Cement, NBFC and Consumption space. Metals are expected to consolidate with high volatility.

Mohit Nigam, Head – PMS, Hem Securities

On the technical side, the key resistance levels for Nifty50 are 17,300 and on the downside, 16,700 will act as a strong support. For Bank Nifty, the main resistance level is 36,500 and on the other side, 35,000 will act as strong support.

Palak Kothari, Research Associate, Choice Broking

Technically, Index has broken out of previous swing high and given a close above the same, suggesting a northward direction in the counter. In addition, the index has closed above 21&50 HMA, making the price stronger. Momentum indicator MACD is trading with a positive crossover adding strength for the next day. Right now, the index has support at 16700 levels while resistance hits at 17000 levels while crossing it may show 17200-17300 levels. On the downside, Bank Nifty has support at 34800 levels while resistance is at 36500 levels.

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