Trade Setup For Sept. 25: Nifty Sees Key Support At 25,800 Amid Positive Short-Term Outlook

The short-term market texture is still into the positive side, but due to temporary overbought environments, expect to see range bound activity in the near future, according to Shrikant Chouhan, head of equity research at Kotak Securities Ltd.

He believes that 25,850–25,800 will act as a key support zone for Nifty while 84,600–84,500 will become a key support zone for Sensex. The profit-booking area for Nifty is 26,050–26,100 while that for Sensex is 85,300–85,500 for the day traders, he added. “However, below 25,800/84,500 uptrend would be vulnerable.”

A strong move above 26,000 will open doors for 26,100 while on the lower side, the zone of 25,800–25,850 will serve as a strong support area, said Aditya Gaggar, director of Progressive Share Brokers Pvt.

The Nifty must decisively break above the 26,000 level for the rally to continue, according to Rupak De, senior technical analyst at LKP Securities Ltd.

"Until the Nifty breaks above the 26,000 level, we expect range-bound movement, with the index fluctuating between 25,800 and 26,000 over the next few hours to a few days," he said.

Benchmark equity indices ended on a flat note after the NSE Nifty 50 hit the crucial 26,000-mark for the first time in the last hour of trade. Despite this, the index managed to record its highest close in the third consecutive session.

The Nifty recorded its highest closing at 25,940.4, up 0.01%, or 1.35 points and the S&P BSE Sensex ended down 0.02%, or 14.57 points, at 84,914.04.

The Indian rupee weakened against the dollar amid a rising dollar index and an uptick in crude prices as tensions heightened in the Middle East amid attacks by Israel.

The rupee weakened by two paise to open at 83.57 against the US dollar, according to Bloomberg data. The local currency had closed at 83.55 against the greenback on Monday.