Nifty Tests 24,540 Resistance as Bank Stocks Drive Rally

The Nifty 50 pushed past 24,440 Monday afternoon, up 170 points, as heavyweight bank stocks and lower crude oil prices lifted sentiment. The Sensex gained 571 points to 78,335, after touching an intraday high above 78,370.

Broad market indices tracked the blue-chip rally. The midcap and smallcap indices added roughly 0.3% each. Most sectoral groups traded in the green, led by realty, oil & gas and auto – each up more than 1%. The Nifty Media index was the outlier, down over 1%.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said buying momentum strengthened after a flat start, with the Nifty moving above last week’s high. The push came from heavyweights: HDFC Bank, Reliance Industries and ICICI Bank were among the top contributors. HDFC Bank, Hindalco, Mahindra & Mahindra, Bajaj Auto and ONGC were the top gainers among Nifty 50 constituents. On the other side, Kotak Mahindra Bank, TCS, Bajaj Finserv, Wipro and Infosys lagged.

Shah pegged immediate support for the Nifty at 24,290–24,310. Resistance sits at 24,540–24,560. A decisive move above 24,560 could extend the rally toward 24,760. A break below 24,290 may drag the index to the 24,140–24,160 zone. For the Sensex, support is 77,900 and resistance 78,700.

The simple read: the rally is broad and risk-on is back. The better read: the Nifty’s resistance zone is the real test. Today’s push above last week’s high is encouraging. The index has failed at 24,540–24,560 before. The next session’s close relative to that band will separate a continuation from a false breakout.

The bullish setup holds if the Nifty stays above 24,440 and the bank stocks that drove the move – HDFC Bank and ICICI Bank – keep adding. HDFC Bank carries an Alpha Score of 46/100 (Mixed) and ICICI Bank scores 57/100 (Moderate). Both are in the driver’s seat. A close above 24,560 with volume would open the path to 24,760.

The case weakens if the Nifty fails at 24,540–24,560 and slips back below 24,290. That would put 24,140 in play and suggest the rally was a short-covering event, not a trend shift.

Lower crude oil prices amplify the tailwind. Brent’s recent slide reduces input costs for oil-marketing companies and eases pressure on the current account. That supports the broader market. The index-level technicals remain the tighter constraint.

For traders, the 24,560 level is the line in the sand. How the Nifty handles it will tell the story.