Trade Setup For Oct. 11: Nifty 50 To See Support At 24,900 Amid Indecisiveness Between Bulls And Bears
Amid no clear indication for the market trend analysts expect 24,900 to act as support for Nifty 50 with resistance levels at 25,200.
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(Source: Austin Distel/ Unsplash)
Indian markets traded sideways throughout Thursday to close flat with a positive bias. With no clear indication for the market trend, analysts expect 24,900 to act as support for Nifty 50 with resistance levels at 25,200.
The markets on the daily chart formed a small candle with non-directional activity on the intraday chart, indicating the indecisiveness between the bulls and bears. If the Nifty 50 index holds above the low of 24,900, it could see a rise to 25,150, but a close below the level could lead to a fresh breakdown, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, reiterated.
However, there is no clarity in the market trend due to changes in the market outlook that have created a challenging market environment, said Osho Krishan, Senior Analyst, Technical & Derivatives, Angel One Ltd.
"Going ahead, the volatility is likely to surge, with opportunities lying within the broader market amidst the commencement of the quarterly season," said Krishnan. He also said that since the current market texture is volatile, a stock-centric approach is a good option for traders.
Bank Nifty was buoyant despite volatility and saw a positive close on Thursday. The index is showing strength on the carts after it formed a big green candle, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.
Yedve also added that the Nifty Bank index is facing resistance at 51,700–51,800 levels. If the index can sustain above 51,800, then it could test levels of 52,500-52,800.
FII/DII Activity
Overseas investors, commonly known as Foreign Portfolio Investors, or FPIs, remained net sellers of Indian equities for nine consecutive sessions on Thursday, while domestic institutional investors bought stocks worth Rs 3,878.33 crore.
According to provisional data from the National Stock Exchange, FPIs offloaded stocks worth Rs 4,926.61 crore.
Market Recap
Benchmark equity indices of India closed with little gains on Thursday as the markets look forward to the earnings of the country's largest IT services firm, Tata Consultancy Services Ltd., to be released later in the day. Inflation data from the US aftermarket hours will also be a key monitorable.
The Nifty ended 0.07%, or 16.50 points up at 24,998.45 and Sensex advanced 0.18%, or 144.3 points, to close at 81,611.4.
Ahead of its September quarter results, TCS shares closed 0.6% lower at Rs 4,227.40 per share.
Money Market
The Indian rupee closed weaker on Thursday as the dollar index cooled, with investors awaiting key US CPI inflation data.
The currency depreciated by 2 paise to close at 83.98 against the US dollar on Thursday, up from its Wednesday close of 83.96, according to Bloomberg.
The dollar index was down 0.02% at 102.911. The minutes revealed that Fed Chair Jerome Powell faced pushback on the half-point interest rate cut, with some officials advocating for a smaller, quarter-point reduction.
