Trade Setup For Sept 29: Nifty To Retest 24,500 Levels

Indian equity benchmarks Sensex and Nifty 50 fell to a three-week low on Friday, logging their steepest weekly drop in nearly eight months, as US curbs on H-1B visas and high tariff rates on branded drugs dampened investor sentiment.

The benchmark Nifty 50, which closed 0.95% lower at 24,654.70, is holding a lower top formation, which supports further weakness from the current levels, as per Amol Athawale, vice president of technical research at Kotak Securities. "We believe that the short-term market trend is weak, but due to temporary oversold conditions, we could see a pullback rally from the current levels. For traders, 24,800 would act as a key level to watch. Below this, the correction wave is likely to continue."

On the downside, the market could retest the levels of 24,500. "Further declines may also occur, potentially dragging the index down to 24,350-24300," the analyst added.

Conversely, above 24,800, a pullback formation could continue up to 25,000-25,100, he said. "On the other hand, if the index holds above 24,500, a sharp recovery can be expected," said Rupak De, senior technical analyst at LKP Securities.