Trade Setup For Oct 31: Nifty 50 Faces Key Support At 24,250-24,200

Market analysts revised their estimates of the support and resistance zones for India's benchmark stock index Nifty 50 after the index fell on Wednesday, following two consecutive days of gains.

For traders, 24,250–24,200 would act as a key support zone, and 24,500–24,550 would be the key resistance area (for Nifty), according to Shrikant Chouhan, head of equity research at Kotak Securities Ltd.

"With Nifty monthly expiry tomorrow, 24,000 is an important level to watch on the downside," said Vikram Kasat, head advisory at Prabhudas Lilladher Pvt.

Nifty 50 is oscillating in a broad range, trading between the resistance of 24,480 and the support of 24,200, according to Aditya Gaggar, director of Progressive Shares Brokers Pvt. 

For Bank Nifty, "the 100-day exponential moving average support positioned near 51,140 and resistance at the previous swing high of 52,580", said Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd.

"In the near term, Bank Nifty is likely to consolidate within the 51,000-52,580 range," he said.

Indian frontline indices resumed decline after a two–day rally, amid a jump in the market volatility as Infosys Ltd. and ICICI Bank Ltd. share prices declined.

The Nifty 50 ended 126 points, or 0.51% lower at 24,340.85, and the Sensex ended 426.85 points, or 0.53% down at 79,942.18.

The India Volatility Index jumped 8.16% to 15.70, the highest level since Aug. 14. The index ended 6.85% higher at 15.51.

The Indian rupee closed little changed against the US dollar on Wednesday, aided by likely intervention by the Reserve Bank of India amid continued overseas fund outflows from domestic stocks.

The local currency ended trading at Rs 84.086, compared to the previous day's close of Rs 84.075, according to Bloomberg data.

According to Nirmal Bang Securities, the rupee has been consolidating in a narrow range of Rs 84.08-84.06 level over the past week.