Trade Setup For Oct 17: Nifty 50 Faces Key Support At 24,900-24,700 Levels

NSE Nifty 50, which settled lower on Wednesday, faces key support in the range of 24,900 to 24,700, according to analysts.

"Immediate support is placed near 24,900, followed by 24,700. In the short term, the index is expected to consolidate within the range of 24,700–25,400," said Hrishikesh Yedve, assistant vice president for technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd.

On the upside, the 21-day exponential moving average is positioned near 25,230, which is expected to act as an immediate hurdle, followed by 25,400, he added.

Rajesh Bhosale, equity technical analyst at Angel One Ltd., said that a "break below 24,900 could open doors for further weakness, potentially testing the 24,700 level."

On the upside, resistance is observed around 25,100, with additional resistance at 25,250, Bhosale said. Only a move beyond this range may spark some bullish momentum on the hourly charts, he added.

The Bank Nifty, which formed a shooting star candle on a daily scale, will face resistance near 52,030, according to Yedve. If the index maintains its position above this level, it could reach the higher range of 52,500 to 52,800, he added.

"On the downside, 51,000 offers strong support, where the 100-days exponential moving average is placed. As long as the index holds above 51,000, a 'buy on dips' strategy is advisable," Yedve said.

The NSE Nifty 50 and the S&P BSE Sensex recorded a two-day losing streak, tracking a sell-off across the globe. Most share indices in the Asia–Pacific and Europe plunged on cues from overnight moves on Wall Street.

The Nifty 50 closed 86.05 points or 0.34%, down at 24,971.30, and the Sensex settled 318.76 points or 0.39%, down at 81,501.36.

Overseas investors, commonly known as foreign portfolio investors, remained net sellers of Indian equities for the 13th consecutive session on Wednesday, while domestic institutional investors stayed net buyers for the 17th straight session.

The FPIs offloaded stocks worth Rs 3,435.9 crore, according to provisional data from the National Stock Exchange. Domestic institutional investors bought stocks worth approximately Rs 2,256.3 crore.

The Indian rupee closed 4 paise stronger as relentless intervention by the Reserve Bank of India offset the impact from consistent selling of stocks by foreign investors. Inflows into the slew of IPOs including Hyundai Motor India Ltd. too supported the rupee.

The rupee closed at Rs 84 against the US dollar, according to Bloomberg data. The currency closed at Rs 84.04 against the greenback on Tuesday.