Trade Setup For Oct 10: Nifty Could Rise To 25,150-25,350 If It holds above 24,690
The index would find support at 24,750, while the resistance level would be at 25,200.
Stocks (Source: Unsplash)
Indian stock indices saw a positive start on Wednesday but failed to keep momentum in the second half due to profit booking. However, analysts believe the Nifty 50 could rise to 25,150–25,350 if it holds above Wednesday's low.
"On the daily chart, the Nifty formed a small red candle, followed by an insider bar candlestick, and it managed to hold above the short-term trend line support. If the index holds above the low of 24,690, it could rise, 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.
The index would find support at 24,750, while the resistance level would be at 25,200, he said.
"For the bulls now, 50-day SMA or 25,050 would be the key level to watch out," said Shrikant Chouhan, head equity research, Kotak Securities. He also said that, since the current market texture is volatile, a level-based trading strategy is ideal for the traders.
In the second half, Bank Nifty continued to face pressure, forming a small red candle and then an insider bar candlestick. Yedve suggested a buy-on-dips strategy as long as the Bank Nifty index holds above the 50,190 levels. He also said that on the upside, 51,700-51,800 could act as a short-term hurdle for the index.
Market Recap
Benchmark equity indices fell back into negative territory after a brief rally, erasing morning gains in the last hour of trade to close near their lowest levels on Wednesday.
During the day, the indices had climbed by as much as 1.2% following the RBI's monetary policy meeting, which shifted its liquidity stance to 'neutral' from the previous 'withdrawal of accommodation,' suggesting a possible rate cut. On expiry day, the weekly futures contract for Nifty Bank remained flat.
The Nifty closed down 0.12%, or 31.20 points, at 24,981.95, while the Sensex decreased by 0.21%, or 167.7 points, to finish at 81,467.10.
Money Market
The Indian rupee closed flat against the US dollar on Wednesday after the Monetary Policy Committee held the Reserve Bank of India's repo rate unchanged at 6.5%, while changing the policy stance to 'neutral'.
The currency closed at Rs 83.96, unchanged from Rs 83.96 at close on Tuesday, according to Bloomberg data.
