Trade Setup For Sept. 24: Nifty Looks Bullish With Key Support At 25,850
While 26,050–26,100 levels provide immediate resistance areas for Nifty, Sensex sees resistance at 85,300–85,500 levels, Kotak Secutiries' Shrikant Chouhan said.
The current market texture is bullish but due to temporary overbought conditions, expect a range bound activity in the near future, said an analyst. The key support zones for Nifty is between 25,800-25,850 levels while for Sensex is 84,500-84,700 for the day traders, according to Shrikant Chouhan, head of equity research at Kotak Securities Ltd.
While 26,050–26,100 levels provide immediate resistance areas for the 50-stock index, the 30-stock index sees resistance at 85,300–85,500 levels, Chouhan said in an emailed statement.
Considering the strong rally in the past two trading sessions, the index seems to be overheated in the short run, according to Aditya Gaggar, director of Progressive Share Brokers Pvt.
"Profit-taking correction can be expected, where the zone of 25,800–25,850 will serve as a strong support area for Nifty; and on the flip side, a level of 26,000 will work as a psychological barrier," he said.
The NSE Nifty 50 sentiment remains positive, suggesting a potential rise towards 26,200 in the near term, said Rupak De, senior technical analyst at LKP Securities Ltd.
"On the downside, the Nifty may find support around the 21–EMA on the hourly time frame, currently positioned at 25,700. The RSI has given a falling trendline breakout on the daily timeframe. The positive sentiment is likely to persist as long as the index stays above this critical moving average," he said.
Market Recap
The NSE Nifty 50 and BSE Sensex settled at the highest closing level for the third consecutive session in a row, as Bharti Airtel Ltd. and HDFC Bank Ltd. led gains. The indices rose to new intraday highs for four days in a row.
The Nifty 50 ended 148.10 points, or 0.57% higher, at 25,939.05. The Sensex ended 384.30 points, or 0.45%, up at 84,928.61.
Money Market
The Indian rupee recorded its highest closing against the US dollar since July 12 as the dollar index struggled near the 101.00 level after the US Federal Reserve guided for more rate cuts by the end of 2024.
The local currency ended flat against the US dollar at 83.54 on Monday, according to Cogencis.
