Nifty Eyes Break Above 25,600: Index Needs Fresh Trigger To Sustain Rally, Say SEBI RAs

Indian equity markets remained rangebound on Tuesday, with investors monitoring the developments in global trade tariff talks ahead of the July 9 deadline. The GIFT Nifty indicates a firm start for the benchmarks on Wednesday.

Analysing the trade action, Bharat Sharma of Stockace Financial Services noted that the market was muted, particularly in the second half of trading on Tuesday. He said it could be attributed to two reasons: either the market is waiting for a catalyst to trigger a further rally, or it was cautious ahead of the Sensex expiry. 

However, the overall market sentiment remains bullish, and there is a clear need for additional momentum to sustain this upmove, according to Sharma. He pegged immediate resistance at 25,550, which, if breached, could move easily to 25,580-25,600. If the Nifty index moves above this level, then it may test 25,650-25,700 or higher. 

On the downside, Sharma sees immediate support at 25,520-25,500. If the index breaks below this level, a fall to the 100-day Exponential Moving Average (EMA) at 25,470 is likely, with further correction seen until 25,420-25,400 and 25,300. 

He concluded that the chart formation continued to look positive, warranting a positional bullish bias. He also advised traders to manage intraday corrections by using the identified levels.

Analyst Ashish Kyal highlighted that the Nifty index has been finding resistance near 25,600. A 15-minute close above this threshold could generate the momentum for a move to 25,680-25,750 levels, he added.

On the downside, 25,460 must remain protected on an hourly closing basis. Kyal said that as the markets entered the momentum time zone around July 4, confirmation on price action is required to determine next moves for the index.

Prabhat Mittal pegged immediate support for the Nifty at 25,470 and resistance at 25,720, while he placed Bank Nifty support at 57,100 and resistance at 57,800.

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