Trade Setup For Aug. 26: Nifty Faces Resistance At 25,000 Levels
The Sensex and the Nifty both closed nearly 0.40% up on Monday.
The market texture for the NSE Nifty 50 intraday trade is non-directional, according to analysts, who advice level-based trading.
"For the bulls, the 25,000 level will be the immediate breakout point. A successful breakout above 25,000 could push the market towards 25,150-25,200," stated Shrikant Chouhan of Kotak Securities.
On the downside, immediate support is placed at 24,860, according to Nilesh Jain of Centrum Broking. While momentum indicators continue to remain in buy mode, some consolidation is likely before the index attempts another leg higher, he added.
The Nifty 50 has formed a small-bodied bull candle with long shadows in either direction which remained contained inside previous session price range, signaling consolidation around the 25,000 levels, said Bajaj Broking Research. "We recommend a staggered accumulation approach, focusing on fundamentally sound counters, particularly those likely to be beneficiaries of the upcoming GST rationalisation."
Whereas Bank Nifty still displays underperformance, trading below its recent breakout zone, say analysts.
Immediate resistance is placed at 55,700; a move above this could trigger fresh momentum, says Mandar Bhojane of Choice Broking. On the downside, support lies near 55,000, where the 100-EMA is placed. A breakdown below this could lead to further correction towards 54,400 and 54,000 levels, he adds.
The current trend remains sideways to bearish, with the RSI at 40 trending downward, showing persistent weakness, he further mentions.
Market Recap
At close, the Sensex was up 329.06 points or 0.40% at 81,635.91, and the Nifty was up 97.65 points or 0.39% at 24,967.75.
Currency Update
The Indian rupee closed five paise weaker at 87.58 a dollar on Monday.
