Trade Setup For Oct 1: Nifty Support Moves To 24,500 Ahead Of RBI Rate Decision

Markets extended their decline for the eight days after a volatile and choppy trade driven by monthly F&O expiry. Nifty continues to be in a corrective phase and will see further weakness in the near term said analysts.

The daily chart indicates that Nifty has once again former a bearish candle with wicks on both sides indicating that the recent rebound could not hold and sellers continued to dominate at higher levels, according to Bajaj Broking Research.

"Nifty remains in a corrective phase, with an important support test ahead and a potential rebound dependent on breaking past near-term resistance," said Bajaj Broking.

"From a technical perspective, a sustained move above 24,750 could pave the way for a rally toward 24,800 and 24,900," said Amruta Shinde, Technical & Derivative Analyst, Choice Broking. She further added that on the downside, immediate support lies at 24,500 and 24,400, which may serve as potential entry points for long trades.

The Bank Nifty also showed signs of consolidation as if swung between 54,770 and 54,550, according to Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm. While resistance will be at 54,800-54,900, a move above this could indicate an upward movement to 55,000-55,100.

"On the downside, support is placed at 54,500–54,400, while a slip below 54,300 may trigger sharper selling toward 54,100–53,800," Ponmudi added. In addition, 53,800 also coincides with 200-day moving average, a long-term support zone to watch.