The broad-based Nifty on Wednesday (June 11) closed after making a gain of 73.8 points at 4,523.60, thereby finishing its three-day loss, as investors felt the stock market entered into oversold zone.
Mr. Suresh Iyer, technical analyst at Asit C Mehta said that the surprising repo rate hike of 25 basis points by the central bank will have an impact on the market.
The RBI has hiked its key lending rate by 25 basis points to 8% in order to halt inflation prospects. But, the RBI kept all other rates unaltered.
Mr. Iyer called Wednesday’s closing as comfortable. The overall market breadth was also safe on Wednesday.
In the short term, the market will be news driven.
“As the market is news driven one, I will be on sidelines. Nifty has top short term resistance near 4,611-4,626. Once these levels get breach, I will be on a long side,” Mr. Iyer added.
He said that the market has resistance at 4,656, 4,746 and 4,825 levels. The major support levels are placed at 4,370, 4,228 and 4,040, he added.