Commenting on the day’s action, Vinod Nair, Head of Research at Geojit Financial Services called the beginning of 2025 positive with broad-based recovery. However, the sustainability of the trend will depend on the earnings growth in Q3, where the expectation is positive on a QoQ basis, he said.
What should traders do? Here’s what analysts said:
Rupak De, LKP SecuritiesThe index remained volatile but maintained a positive bias throughout the day. Short-term sentiment appears strong, with the index rising for the second consecutive session. However, the key hurdle remains the index’s position below the 200-day moving average (200 DMA). The ongoing rally may face resistance around 23,900–24,000. A decisive move above 24,000 could trigger an extension towards 24,500. On the downside, support is seen at 23,550.
Ajit Mishra, Religare Broking
The markets began the calendar year on a positive note, gaining nearly half a percent. After an initial decline, buying interest in select heavyweight stocks across sectors quickly erased losses, gradually pushing the index higher. As a result, the Nifty reclaimed its long-term moving average, the 200 DEMA, and ended at 23,742.90. The index has now entered its second week of consolidation, and current indicators suggest that this trend is likely to persist.
Shrikant Chouhan, Kotak Securities
Technically, after a short-term correction, the index has formed a reversal formation, which is largely positive. For traders, 23,550/78000 would act as a key support zone. Above this level, the Nifty/Sensex could move up to 23,900–24,000/79000-79200. On the other hand, if it falls below 23,550/78,000, the uptrend would be vulnerable. Below this point, traders may prefer to exit their long positions.Also Read: Stocks to buy in 2025: 66 ideas from top brokerages for your new year portfolio
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
