The Nifty 50 staged an outstanding performance after a couple of sessions of consolidation, ending at a fresh eight-and-a-half-month high with gains of eight-tenths of a percent. Persistent FII buying and easing oil prices following comments by US President Donald Trump supported the rally, although bears stepped in to book some profits on November 11.
With Wednesday's rally, the index has gained nearly 14 percent from its October low of 22,180 and 11.3 percent over the past two consecutive weeks. Bulls continue to dominate the broader market structure, supported by healthy momentum, although the RSI has moved closer to the overbought zone.
Going ahead, the 25,400–25,500 range, which also broadly coincides with the 78.6 percent Fibonacci retracement of the correction from 26,373 to 22,180, is expected to act as a crucial resistance zone for the Nifty 50. A decisive move above this hurdle could open the door for a rally towards 25,900–26,000. However, failure to sustain above this zone could trigger consolidation and minor profit-booking, with immediate support at 25,000, followed by 24,800 as a crucial support level, according to experts.
The Nifty 50 opened nearly 300 points higher on Wednesday and touched an intraday high of 25,424 before witnessing gradual profit-booking during the session. After sustained selling pressure, the index rebounded by around 125 points during the closing auction and settled at 25,255, up 210 points or 0.84 percent.
On the daily timeframe, the index formed a small-bodied bearish candle with a minor upper shadow and a noticeable lower shadow, indicating some profit-booking at higher levels. However, buying interest at lower levels during the closing auction helped the index recover from its intraday low.