Equities in the Indian stock market rebounded from three-week lows as metal stocks and shares of automobile companies recovered, enabling the Nifty 50 index to register a solid performance on Wednesday. The Nifty 50 index gained 2.5% to recover from recent losses and put the stock market back on course to post a second straight month of gains.
The Nifty 50 index has recently experienced a renaissance, boosted by heavier foreign portfolio inflows that have benefited banking and financial stocks. In Tuesday’s trading, Bajaj Finance and Bajaj Finserv led the gaining stocks in the financials sector with a more than 5% gain, as the banking and finance indices closed 3.3% and 3.4% higher.
The Nifty 50 index is closed today for Ganesh Chaturthi. Trading will resume on 1 September with the Nifty 50 having scaled a critical resistance level. A key fundamental trigger will be the Indian quarterly GDP, which was released a few minutes before publishing this piece. It came in at 13.5%, and despite not meeting the market expectation of a 15.2% growth, it is remarkably higher than the previous number of 4.1%.
Nifty 50 Forecast
The penetration close above the 17605 resistance met the filter for a breakout. This leaves the bulls with a chance to aim for 17974 (19 August high). Above this level, the uptrend resumes, targeting the year-to-date high at 18349 (18 January 2022 high). 18603 is the next target to the north if the bulls take out 18349.
On the flip side, a corrective decline is possible if the bears degrade the pivots at 17605 and 17125 (7 February low and 4 May high). This scenario would see 16789 and 16407 emerge as the next downside targets. 15894 (14 July low) and 15473 (21 June low) are additional targets to the south if there is further price deterioration.
Nifty 50: Daily Chart
