Trade Setup For Oct 14: Nifty Likely To See Consolidation; Key Support At 25,100

Analysts expect the Nifty 50 to see a phase of consolidation in the short-term, with immediate support at 25,000 and 25,100 levels.

The daily chart indicates that NSE Nifty has formed a small bullish candle, phase of consolidation with positive bias amid stock-specific activity, according to Bajaj Broking Research. "The Nifty has already rallied approximately 700 points over the past two weeks, pushing the daily stochastic indicators into overbought territory. This suggests that some short-term consolidation may be likely," said the brokerage.

"From a technical perspective, the short-term uptrend remains intact, although profit booking near resistance levels may cap upside momentum," added Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth tech firm.

According to Ponmudi, the key support is placed at 25,150 and 25,000 levels, and a breakout from this zone will accelerate the index to move towards 26,000 and 25,700 in the near term.

The Bank Nifty continued to demonstrate strength on Monday and outperformed the headline index.

"Bank Nifty formed a second consecutive bull with a higher high and higher low highlighting positive bias. Going forward, the index is likely to sustain its upward momentum," said Bajaj Broking. While resistance will be at 55,8000, support is placed at 56,200 and 56,300.

Market Recap

The Indian benchmarks snapped a two-day gaining streak to end in the red. The Nifty 50 closed 0.23% lower at 25,227.35 while Sensex closed 0.21% lower at 82,327.05.

During the day, Nifty fell as much as 0.53% to 25,152.30 and Sensex was down 0.55% to 82,043.14.

"Over the weekend, fresh tariff tensions resurfaced, this time between the US and China, which weighed on global sentiment. In line with this, our markets opened on a weak note. However, after the initial dip, there was no major follow-up selling, and prices gradually recovered through the session," said Rajesh Bhosale, Equity Technical Analyst, Angel One..

Currency Update

The rupee appreciated five paise to close at 88.67 (provisional) against the US dollar on Monday, supported by suspected RBI intervention and fresh foreign fund inflows.