Indian equities have another 2-3% upside, with the next resistance level for the Nifty at around 24,336 in the short-term, according to analysts, as the benchmark index ended June with 6.56% gains, the most since December.
The Nifty index has found resistance near the 24,200 levels, and failed to close above the trendline resistance. “If the index sustains above 24,200 levels, then the rally could extend towards 24,500-24,600 levels in the short-term,” according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
The NSE Bank Nifty opened higher but closed lower at 52,342, forming a bearish candle near resistance. “We might see a push towards 54,000 for the Nifty Bank index, despite today’s decline. The long-term trendline from 2010 indicates resistance at 54,000 to 56,000, suggesting some upside but warranting extreme caution,” according to Jai Bala, founder and chief market technician at Cashthechaos.
With economic growth likely to be around 7% and the full-fledged budget expected by mid-July, the market may remain well-bid. But adverse influences from developments overseas may not be ruled out for the time being, according to Dr. Joseph Thomas, head of research, Emkay Wealth Management.