05 June 2024 / 03:51 PM IST

Above 22,800, Nifty may rise to 23,000: Mandar Bhojane, Research Analyst, Choice Broking

The Indian benchmark index erased some of the previous day’s losses and ended higher with the Nifty closing above 22,600. After a sharp correction following the Lok Sabha election results, where it fell 8.5 percent, the Nifty rallied 6.16 percent from yesterday’s low, showing a strong recovery after Prime Minister Modi’s speech. The Sensex closed up 2,303.19 points, or 3.20 percent, at 74,382.24, while the Nifty ended up 735.80 points, or 3.36 percent, at 22,620.30.

Nifty’s strong recovery from yesterday’s lows included a gap-up opening of 240 points. A sharp rebound in the second half of the session, closing above the 22,600 level, indicates a possible bullish reversal. If the price closes above the 22,800 level, it is likely to move towards 23,000 and above in the coming days. On the downside, 22,000 and 21,800 will act as immediate support levels.

All BSE Sensex and Nifty 50 stocks ended in the green. All sectoral indices ended positively with Auto, Bank, FMCG, Metal, Telecom and Media sectors gaining 4-6%. The BSE mid-cap index gained 4 percent, while the small-cap index gained 3 percent. India VIX fell 29.4% intraday to settle at 18.885. According to options data, the highest open interest (OI) on the call side is at 22,800 strike price, followed by 23,000 strike price. On the put side, the highest OI is at the 22,200 strike price.