Nifty and Sensex Edge Higher as Technical Setup Signals Cautious Recovery in Indian Equities

Indian equity benchmarks traded slightly higher in early deals on Wednesday, even as investors tracked uncertainty around the war. At 9.17 am, the BSE Sensex was up 368.88 points, or 0.48%, at 76,439.72. The Nifty 50 rose 118.90 points, or 0.50%, to 23,700.05.

The Sensex had begun the session 296.71 points higher at 76,367.55, compared with the previous close of 76,070.84. In the broader market, traders watched a cautious Nifty setup. The index stayed below its 10-DEMA, though it had closed above 23,500 on the prior day.

Technical gauges hinted at a tentative recovery from oversold conditions. The RSI improved from oversold readings, but stayed below 40. Momentum appeared to pick up as volatility eased. India VIX cooled below 19, signalling reduced near-term swings compared with recent sessions.

"On the daily chart, Nifty has formed a bullish candle, indicating continuation of the ongoing pullback after the recent sell-off. The index is currently trading near the 0.236 Fibonacci level placed around 23,750, which may act as an immediate resistance zone. The broader trend remains under pressure, as the index continues to trade below its key moving averages, indicating that the recent up move is more of a recovery within a declining phase rather than a confirmed trend reversal," commented Om Mehra, Technical Research Analyst, SAMCO Securities.

"The RSI has moved up from deeply oversold levels and is now placed near 33, indicating some improvement in momentum. On the hourly chart, a bullish divergence is visible, which supported the recent rebound. Sustaining above 23,700 on a closing basis will be important for extending the recovery toward the 23,900-24,000 zone. On the downside, 23,200 remains a key support level, and a break below this may resume the downward trend," he further added.

"The index has formed a bullish candle after a sequence of declines, indicating a short-term pullback. However, the broader setup continues to remain weak, as Nifty Bank is still trading well below its short-term moving averages. The RSI is placed near 31 and has shown a slight uptick from deeply oversold levels, indicating some easing in downside momentum. However, it continues to remain in the lower range, suggesting that strength is still limited," Om Mehra commented.

"Nifty Private Bank and Nifty PSU Bank indices, despite showing only marginal gains, indicate that the short-term recovery may persist in the session. Going ahead, sustaining above 54,200 on a closing basis will be important for extending the recovery toward 55,500-56,000. The current move appears to be a short-term pullback within a broader declining trend," he further added.

Stocks to buy today with Nifty hourly trend cues

Anand James, Chief Market Strategist at Geojit Investments Limited, suggested two picks for a five-day holding period. The view followed Nifty on the hourly chart moving above its 10-EMA and 20-EMA. That setup supported a near-term strength bias, alongside range breakout patterns in both counters.

Stock	Entry range	Target	Stoploss	Pattern	Holding period
Acutaas Chemicals	—	2345 - 2440	2244	Range breakout	5 days
Shaily Engineering Plastics	2290 - 2266	2320 - 2400	2235	Range breakout	5 days

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