Trade Setup For Oct 15: Analysts Peg Support For Nifty 50 Around 25,000
The Bank Nifty can test levels of 52,500–52,800 in the short term.
Description: Stock market display
(Source: Envato)
The NSE Nifty 50 has resumed its upward movement towards 25,500 after a short three-day consolidation, according to analysts. The markets on the daily chart formed a green candle, signalling strength.
Immediate support is identified around 25,000, with stronger support in the 24,800–24,700 range, according to Rajesh Bhosale, equity technical analyst at Angel One. He expects the 20 exponential moving average to serve as an immediate resistance around 25,300.
"On the upside, the 21-DEMA (double exponential moving average) is to be placed near 25,270, which will act as a short-term hurdle for the index, followed by 25,400. On the downside, the index is to find immediate support near 24,900," Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C Mehta Investment Intermediates Ltd., said.
"We expect the positive momentum to continue over the next few trading sessions towards 25,234-55,360. Support base shifts higher towards 24,920," said Jatin Gedia, technical research analyst at Sharekhan, a subsidiary of BNP Paribas.
Analysts recommend a buy-on-dips strategy as long as the index holds above 24,900 for some analysts and 51,817 for others. They cited easing geopolitical tensions, which had initially contributed to market weakness.
The Bank Nifty also formed a green candle, indicating strength. The Bank Nifty can test levels of 52,500–52,800 in the short term. On the downside, 51,000 will provide strong support for Bank Nifty, where the 100-DEMA is placed, according to Yedve.
"Support base shifts higher towards 51,400–51,500," Gedia said.
FII/DII Activity
Overseas investors, commonly known as foreign portfolio investors, remained net sellers of Indian equities for the 11th consecutive session on Monday, while domestic institutional investors bought stocks worth Rs 2,278.09 crore.
The FPIs offloaded stocks worth Rs 3,731.6 crore, according to provisional data from the National Stock Exchange.
Market Recap
India's benchmark stock indices, Nifty and Sensex, ended at over one-week highs on Monday, tracking the sharp gains in Infosys Ltd. and HDFC Bank Ltd. Market participants await earnings from Reliance Industries Ltd. and HCL Technologies Ltd. for cues. To get live updates on RIL Q2 earnings, click here.
The NSE Nifty 50 ended 0.66% higher at 25,127.95, and the BSE Sensex closed 0.73% higher at 81,973.05. Both the indices closed at their highest levels since Oct. 3.
During the session, the Nifty 50 rose 0.78% to 25,159.75, and the Sensex rose 0.85% to 82,072.17.
