Nifty Rebounds to 22,753; Eyes 23,000 Resistance Ahead
After a four-day decline, the Nifty index gained 153 points, closing at 22,753, with analysts eyeing a potential rise to 23,000 if resistance is cleared.
Nifty closed at 22,753 after recovering from an early drop to 22,387.
Immediate resistance is noted at 22,800–22,850, with support around 22,550.
Investors are closely watching upcoming central bank meetings and corporate earnings.
The Nifty index ended a four-day losing streak on Monday, rising by 153 points to close at 22,753. The recovery was driven by increased buying interest in the latter half of the trading session, which helped the benchmark index bounce back from an early sell-off that saw it dip to an intraday low of 22,387 shortly after the market opened. A strong rebound lifted the index nearly 300 points before profit-taking reduced some gains, but renewed buying later in the day allowed the Nifty to close near its session high.
Several stocks contributed to the Nifty's recovery, with Dr. Reddy's Laboratories, JSW Steel, and BSE among the top gainers. In contrast, Shriram Finance, Tata Consumer Products, and Bajaj Finance lagged behind. Most sectoral indices finished in the green, particularly Nifty Metal, Cement, Pharma, and Healthcare, while Nifty Media and Consumer Durables were exceptions.
The broader market also saw a recovery following a significant sell-off last week, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising by 1.2% and 1.4%, respectively. Market direction in the coming days is expected to be influenced by global cues, central bank policy decisions, and the upcoming corporate earnings reports. Brent crude oil prices were trading around $115 per barrel, slightly below a six-month high, amid ongoing concerns about oil supply disruptions due to attacks on Saudi Arabia.
Investors are particularly focused on the upcoming policy decisions from the US Federal Reserve on October 28, the European Central Bank on October 29, and the Bank of Japan on October 30, as these outcomes could significantly impact global risk appetite and currency movements. The Indian rupee weakened for the third consecutive session, closing at 95.19 against the US dollar, influenced by weaker Asian currencies and rising domestic bond yields.
As the September-quarter earnings season progresses, stock-specific movements are expected to remain in focus. Companies like Tata Steel, Tata Capital, Waaree Energies, and United Breweries are set to announce their results on Tuesday. Analysts suggest that if the Nifty can decisively move above the resistance zone of 22,800–22,850, it could trigger further buying interest and potentially lead to a rise towards the next resistance level at 23,000. However, a drop below 22,372 could reignite selling pressure, highlighting the importance of maintaining support levels around 22,200–22,300.
