Tech View: Nifty reclaims 200-DMA. What are cues for merchants on Thursday?

Indian benchmark indices began 2025 on a constructive be aware on Wednesday aided by shopping for tendencies in most sectors, significantly in auto and banks. Whereas the S&P BSE Sensex settled at 78,507.41, up by 368.40 factors or 0.47%, the broader Nifty closed at 23,742.90, greater by 98.10 factors or 0.41%.

Commenting on the day’s motion, Vinod Nair, Head of Analysis at Geojit Monetary Companies known as the start of 2025 constructive with broad-based restoration. Nonetheless, the sustainability of the pattern will rely upon the earnings progress in Q3, the place the expectation is constructive on a QoQ foundation, he mentioned.

What ought to merchants do? Right here’s what analysts mentioned:

Rupak De, LKP SecuritiesThe index remained unstable however maintained a constructive bias all through the day. Brief-term sentiment seems robust, with the index rising for the second consecutive session. Nonetheless, the important thing hurdle stays the index’s place beneath the 200-day shifting common (200 DMA). The continued rally could face resistance round 23,900–24,000. A decisive transfer above 24,000 may set off an extension in the direction of 24,500. On the draw back, help is seen at 23,550.

Ajit Mishra, Religare Broking

The markets started the calendar yr on a constructive be aware, gaining practically half a %. After an preliminary decline, shopping for curiosity in choose heavyweight shares throughout sectors rapidly erased losses, step by step pushing the index greater. Because of this, the Nifty reclaimed its long-term shifting common, the 200 DEMA, and ended at 23,742.90. The index has now entered its second week of consolidation, and present indicators counsel that this pattern is prone to persist.

Shrikant Chouhan, Kotak Securities

Technically, after a short-term correction, the index has shaped a reversal formation, which is essentially constructive. For merchants, 23,550/78000 would act as a key help zone. Above this degree, the Nifty/Sensex may transfer as much as 23,900–24,000/79000-79200. However, if it falls beneath 23,550/78,000, the uptrend could be weak. Under this level, merchants could favor to exit their lengthy positions.Additionally Learn: Shares to purchase in 2025: 66 concepts from high brokerages on your new yr portfolio

(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Instances)