Trade Setup For Oct. 9: Nifty 50 Resistance To Be Around 25,150-25,350 Levels
Indian benchmark index Nifty 50's resistance levels for is expected to be around 25,150–25,350 level,
(Source: Freepik)
The resistance levels for Nifty 50 are expected to be around the 25,150–25,350 levels, according to analysts, as long as the index holds above the low of 24,690 levels. Nifty snapped its six-session losing streak to end higher on Tuesday, with investor sentiment influenced by the vote count for assembly elections in Haryana and the Union Territory of Jammu and Kashmir, alongside ongoing concerns in the Middle East.
The volatility index, INDIA VIX, cooled off by 3.26%, settling at 14.59, indicating a drop in market volatility.
Technically, on the daily chart, the index formed an insider bar candlestick near short-term trend line support and the previous demand zone. Thus, as long as the index holds above the low of 24,690, levels of 25,150–25,350 could be possible, according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.
Investors should adopt a 'buy on dips' strategy for the short term in the Nifty index, advised Yedve.
On the upside, the market could sustain its pullback momentum toward the 25,150-25,200 zone, with resistance potentially extending to 82,000-82,300, according to Shrikant Chouhan, head of equity research at Kotak Securities. "However, if the index dips below 24,850/81,100, the sentiment could shift, and traders may consider exiting long positions," Chouhan added.
"However, as the volatility subsided, the index demonstrated a gradual upward trend, concluding in the upper quartile of the trading range, with 50 daily MA serving as immediate resistance. The index successfully maintained the pivotal support near number 24,750," by Ameya Ranadive of StoxBox.
Bank Nifty, which closed at 51,021 on Tuesday, faces a short-term resistance level around 51,800, according to Yedve. "Technically, on the daily chart, the index also formed an insider bar candle near the previous demand zone, indicating strength. As long as the index holds above 50,190, a 'buy on dips' strategy is advisable," Yedve stated.
Market Recap
Indian benchmark indices, snapped their six-session losing streak to end higher on Tuesday, with the Nifty closing at 25,013.15, up 217.40 points, and the Sensex at 81,634.81, gaining 584.81 points. Intraday, both the indices gained 1% and 0.88%, respectively.
The indices were led by heavyweights HDFC Bank Ltd., Infosys Ltd., and Reliance Industries Ltd.
Nifty Media led sectoral gains and rallied over 3%, with Saregama India Ltd. surging over 9% intraday on reports of its potential acquisition of Karan Johar's Dharma Productions. Whereas Metal index shed nearly 1%.
The indices ended higher even as most global markets fell, and investors now await the outcome of the monetary policy committee meeting due on Wednesday.
Money Market
The Indian rupee closed 2 paise higher at 83.96 against the US dollar on Tuesday, gaining some strength after closing at 83.98 on Monday.
The local currency strengthened as both the dollar and Brent crude dipped, with traders booking profits after recent rallies driven by escalating tensions in the Middle East. The dollar index slipped by 0.15% to 102.3840, while Brent crude prices fell 2.08% to $79.25 per barrel.
