Nifty Holds Crucial Support: Can Bulls Defend It Again? Check Key Levels, Stock Of The Day

On the weekly expiry day, the Nifty 50 index witnessed heightened volatility. During the session, the index slipped below the prior day's low and even breached the 25,100 mark on an intraday basis. The testament to heightened volatility was the fact that Tuesday's trading range (difference between high and low) surpassed the 10-day average range. Although the index respected the crucial support zone of 25,037-25,100 (mentioned in the prior write-up), it extended its losing streak to the third consecutive session, closing 32.85 points, or 0.13%, lower at 25,169.50. Market breadth stayed weak, weighed down by declines in the broader markets.

On the daily chart, the index formed a long-legged, small-bodied candle and closed near the prior day's low. Importantly, it closed below the 23.6% retracement with an increased volume, confirming the start of a counter-trend. Technically, the 25,100-25,037 zone emerges as a vital support area, being a confluence of the 20-DEMA, a 38.2% retracement of the recent upswing, and a bullish gap area. Price behaviour around this zone will be decisive: failure to hold it could trigger further volatility, with the index likely to test 24,800 – where the 61.8% retracement level of the upswing lies. On the contrary, a close above Tuesday's high of 25,261 would signal the first sign of strength, paving the way for an upmove towards the 25,330-25,350 zone. A decisive break beyond either side of the 25,037-25,350 range could result in a swift move of 150-200 points.

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Overall, after a sharp rally of more than 1,000 points from the low of 24,404.70, the index has entered into a counter-trend phase. The 25,037-25,100 band remains the key to watch; holding it may result in testing levels of 25,350 on the upside, while breaching it could extend the counter-trend phase towards the 24,800 level. Meanwhile, the high-beta index Bank Nifty index exhibited relative strength, closing above the 55,500 mark. Going forward, sustaining above the nearly identical highs of the last two sessions at 55,666 would further strengthen the bulls' case and open the path to reclaiming the 56,000 level.

Given this backdrop, a prudent approach would be to focus on individual stocks showing strong technical setups and relative strength, rather than taking aggressive directional bets on the Nifty 50 index.

Stock Of The Day: Heritage Foods

Heritage Foods stock formed a sizable bullish candle on September 18, 2025, accompanied by volumes more than 15 times its 30-day average of 6.07 lakh shares per day. This surge in activity signalled strong participation in the direction of the trend. Post this sharp move, the stock has been consolidating in the upper range of that candle, with volume gradually drying up – a typical behaviour exhibited by the stock after a swift rally.

 On Tuesday, the stock closed positively without breaching the prior day's low and continued to tag along the upper Bollinger Band, indicating that the momentum is likely to resume after the brief consolidation phase. The daily MACD also remains firmly in an uptrend, diverging from its nine-period average, thus validating positive bias.

Considering the above price action evidence, we expect the stock to test levels of Rs 560-565 in the short term. However, a close below Rs 508 would negate the bullish undertone.

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