The benchmark equity indices are expected to remain consolidated with an upside bias on the back of positive domestic inflation and the US Federal Reserve's rate-cut stance.
The Nifty will hold within the 23,000–23,100 zone in case of a dip, while the 23,600–23,800 zone may act as an immediate resistance, Yedve said.
On a daily scale, the Bank Nifty forms a tri-star doji candlestick pattern, Yedve said.
"According to this pattern, if the index sustains below 49,530, profit booking may be feasible."
The GIFT Nifty was 19.5 points or 0.08% higher at 23,464.50 as of 06:46 a.m.
The benchmark equity indices are expected to remain consolidated with an upside bias on the back of positive domestic inflation and the US Federal Reserve's rate-cut stance.
The NSE Nifty 50 is finding it tough to surpass the 23,500 mark and has consolidated in the 23,000–23,500 range in the last three sessions, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd. "Thus, as long as the index remains below 23,500, profit booking is possible."
The Nifty will hold within the 23,000–23,100 zone in case of a dip, while the 23,600–23,800 zone may act as an immediate resistance, Yedve said.
The consumer inflation in May fell to 4.75% against 4.83% in April. This compares to a Bloomberg estimate of 4.85%.
The decline in core inflation to 3.1% is good news for the monetary policy committee and this paves the way for rate cut by the RBI earlier than expected if the Fed also turns dovish, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services. "From the stock-market perspective, this is good news, which can further strengthen the bullish trend being witnessed in the market now."
The markets are expected to react to the outcome of the US Fed meeting in early trades on Thursday, which could set the tone for the day, according to Ajit Mishra, senior vice president of research at Religare Broking Ltd.
Overnight, the Federal Reserve officials pencilled in just one interest-rate cut this year and forecasted more cuts for 2025.
On a daily scale, the Bank Nifty forms a tri-star doji candlestick pattern, Yedve said. "According to this pattern, if the index sustains below 49,530, profit booking may be feasible."
The GIFT Nifty was 19.5 points or 0.08% higher at 23,464.50 as of 06:46 a.m.
