The Nifty 50 staged a sharp rebound on Wednesday but failed to hold on to early gains, underscoring persistent resistance near the 23,000 mark and a fragile near-term technical setup.
The benchmark index ended at 22,679, up 348 points or 1.6 per cent, after rising as much as 2.5 per cent intraday to hit 22,941. However, selling pressure at higher levels dragged the index below 22,700, indicating continued profit booking.
Dhupesh Dhameja, Derivatives Research Analyst at Samco Securities, said the index moved towards 22,800-22,950, where fresh selling pressure emerged. He noted that the broader trend remains weak and a sustained move above the 22,950-23,000 zone is crucial to extend the recovery towards 23,200-23,400, while a breach below 22,500 could drag the index back to 22,250-22,000 levels.
Technical analysts said the inability to sustain above 22,900 reinforces the significance of the 22,900-23,000 zone as a strong resistance band.
Hariprasad K, founder, Livelong Wealth, noted that heavy call open interest build up around 23,000 continues to signal a sell-zone, keeping the market in a “sell-on-rise” structure. On the downside, immediate support is seen in the 22,500-22,600 range, and a breach potentially accelerating declines towards the 22,000 mark, he added.
Bajaj Broking said the index has entered an oversold zone in the short term, leaving room for a technical bounce, though a broader reversal would require a move above 23,465.
