Trade Setup For Sept. 27: Nifty Eyes 26,300-26,375 Amid Bullish Momentum

Nifty settled at its highest closing level for the fifth straight session.

Sreshti Srinivasan

26 Sep 2024, 11:08 PM IST

<div class="paragraphs"><p>On Thursday, the Nifty 50 ended 211.90 points, or 0.81% higher at 26,216.05, and the Sensex ended 666.25 points, or 0.78% higher at 85,836.12. (Source: Pixabay)</p></div>

On Thursday, the Nifty 50 ended 211.90 points, or 0.81% higher at 26,216.05, and the Sensex ended 666.25 points, or 0.78% higher at 85,836.12. (Source: Pixabay)

The Nifty 50 has broken out of consolidation on the daily timeframe, indicating increasing bullish momentum, according to Rupak De, senior technical analyst at LKP Securities Ltd.

The sentiment is expected to stay positive, as the index closed above a key moving average, he said. “A drop below 26,000 might disrupt the current bullish trend, but until then, the strength is likely to persist in the index.”

According to Shrikant Chouhan, head equity research at Kotak Securities Ltd., the bullish setup is likely to continue if Nifty 50 trades above 26,000 and Sensex 30 trades above 85,300.

On the higher side, Nifty could move up to 26,300–26,375, and Sensex can proceed up to 86,000–86,300. While, on the other side, if Nifty falls below 26,000 then the uptrend would be vulnerable, he said. “Below the same, traders may prefer to exit out from the trading long positions.”

“On a daily timeframe, the index has formed a Marubozu Open candlestick pattern, which defines a strong grip of bulls,” said Aditya Gaggar, director of Progressive Share Brokers Pvt.

“If the Nifty 50 is above 25,970, the uptrend is intact with a probable upside of 26,450,” he said.

F&O Cues

The Nifty September futures were up 0.61% to 26,285 at a premium of 69 points, with the open interest up by 40.16%.

The Nifty Bank October futures were up by 0.3% to 54,497 at a premium of 122 points, while its open interest was up by 4.18%.

The open interest distribution for the Nifty 50 Oct. 3 expiry series indicated most activity at 27,500 call strikes, with 25,000 put strikes having maximum open interest.

For the Bank Nifty options expiry on Oct. 1, the maximum call open interest was at 54,000 and the maximum put open interest was at 54,000.

FII/DII Activity

Overseas investors turned net buyers of Indian equities on Thursday after staying sellers for two sessions.

Foreign portfolio investors mopped up stocks worth Rs 629.9 crore; domestic institutional investors stayed net buyers for the fourth session and purchased equities worth Rs 2,405.1 crore, the NSE data showed.

Trade Setup For Sept. 27: Nifty Eyes 26,300-26,375 Amid Bullish Momentum

Market Recap

The NSE Nifty 50 and BSE Sensex extended their record run to the sixth session intraday on Thursday, led by gains in Maruti Suzuki India Ltd. and Mahindra & Mahindra Ltd. The benchmarks have been touching fresh highs since Sept. 19.

The Nifty 50 ended 211.90 points, or 0.81% higher at 26,216.05, and the S&P BSE Sensex ended 666.25 points, or 0.78% higher at 85,836.12. Nifty settled at its highest closing level for the fifth straight session.