F&O Talk| 22,700 resistance crucial for Nifty’s break towards 23,300: Sudeep Shah of SBI Securities

Indian stock markets continue to remain in focus as Nifty hovers around crucial resistance levels. According to Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research at SBI Securities, the 22,700 level is a critical resistance for Nifty. A successful breakout above this level could pave the way for a rally towards 23,300 in the near term.

Key Technical Levels and Market Sentiment

Shah emphasized that while Nifty has shown resilience, 22,700 remains a key resistance point. A decisive break and sustain above this level could bring momentum buying, pushing the index towards 23,300. However, if Nifty fails to break this resistance, a pullback towards 22,500 or even 22,400 levels could be possible.

Sectoral Performance and Market Drivers

Several factors are influencing Nifty’s movement:

1. Positive GDP Growth – India’s Q3FY25 GDP growth has shown improvement, which has boosted market sentiment.

2. Sectoral Strength – Metals, capital goods, and energy sectors have outperformed recently, largely due to China’s stimulus measures and declining crude oil prices.

3. Global Market Trends – A fall in the U.S. dollar index has improved investor sentiment towards emerging markets like India.

Shah noted that volatility may persist due to uncertainties in U.S. economic policies, but the overall trend remains positive as long as Nifty holds key support levels.

Market Closing Data & Future Outlook

The BSE Sensex closed at 74,336, a marginal dip of 7.51 points.

The Nifty 50 index gained 7.80 points, settling at 22,552.50.

The Nifty Bank index also witnessed positive movement, indicating strength in financial stocks.

What Should Traders Watch?

22,700 Resistance – A sustained breakout above this level could take Nifty to 23,300.

Support Levels – If 22,500 or 22,400 breaks, a further correction could be seen.

Sectoral Trends – Keeping an eye on metal, energy, and capital goods stocks could be beneficial.

Conclusion

Sudeep Shah’s analysis suggests that traders should closely monitor the 22,700 level in the coming sessions. A breakout above this level could fuel further upside, while failure to sustain may trigger short-term corrections. With positive global and domestic cues, the Indian market remains in a bullish phase, but traders should remain cautious amid possible volatility.