Nifty faces resistance around 21,900: Master Capital Services

The year 2023 proved to be a rollercoaster ride for the equity markets. Benchmark indices, led by Nifty, showcased resilience despite facing challenges on both global and domestic fronts.

Meanwhile, the Nifty posted an impressive double-digit gain of 20 per cent, marking the eighth consecutive year of positive returns. Small and mid-cap indices surged remarkably, solidifying India's position as a stock market superpower with a market capitalisation surpassing $4 trillion.

The Indian market began the year optimistically but faced declines in the first two months, recording negative returns in January, February, August and October. However, it bounced back, hitting record highs in the remaining months, with December standing out as the best, witnessing a Nifty surge of over 7 per cent.

Despite global crises, including inflation, rising crude prices and geopolitical tensions, the market showed remarkable resilience. India, on the domestic front, emerged as the fastest-growing and the fifth-largest global economy.

The RBI initially raised the repo rate in February but later paused to balance growth and inflation concerns. India's GDP growth rate reached 7.6 per cent in the second quarter of the current financial year, with the RBI revising its FY24 GDP guidance to 7 per cent, said Arvinder Singh Nanda, senior vice president of Master Capital Services.

Looking forward, the market anticipates positive momentum, fuelled by optimistic GDP growth prospects, an improving macroeconomic environment, manageable inflation, steady interest rates and robust quarterly earnings performance.

Key events to watch include quarterly earnings, budget, general elections, Fed rate decisions and US presidential election.

In the last session of 2023, Sensex and Nifty traded lower due to weak global cues and selling in index heavyweights. Nifty settled at 21,731.40, reaching its fresh all-time high at 21,801.45, while Sensex settled at 72,240.26 and Bank Nifty closed the week at 48292.25.

“Nifty is establishing new higher highs, with potential support at 21,600 and 21,500, while immediate resistance is anticipated at 21,900, followed by 22,000. For Bank Nifty, a break above 48,650 could lead to further upside, targeting 49,000. A crucial support level lies at 47,800, with the possibility of sideways movement in the range of 47,800 to 48,400,” Nanda added.