The Indian equity benchmark index Nifty 50 is primed for further gains in the coming trading sessions according to projections from a leading financial services provider.
Analysts at Geojit Financial Services believe the Nifty has strong support at the 24,900 level which could propel prices higher. 24,900 is considered a key support level as it represents a retracement level from the index’s recent peaks and troughs.
As long as the Nifty is able to hold above this 24,900 support, there is potential for the index to rally towards 25,390 marks. An even more optimistic case could see the benchmark climb to 25,770, according to the analysts.
Their analysis is based on studying various technical indicators like retracement levels and support zones. The current recovery attempts in the market also provide signs that upside momentum may continue if 24,900 is defended.
Some short-term risk remains, with the analysts noting that a failure to hold 24,700 could invite a pullback towards 24,370-23,900 price territory. This is especially in light of reduced expectations for US interest rate cuts later this year, which may dampen risk-on sentiments.
Nonetheless, with volatility declining from recent highs as indicated by the falling India VIX index, the odds of a swift downside appear limited for now. Overall, technical studies point to the Nifty gathering strength on the back of solid support at 24,900.
