Trade Setup For Sept 16: Nifty Faces Resistance At 25,200 Levels
A decisive close up to 25,250 level will 'mark a trend reversal confirmation' from the ongoing corrective phase, according to analysts.
Analysts see NSE Nifty 50 approaching a short consolidation phase after last week's high, but their near-term outlook remains positive. The benchmark index closed 0.18% lower at 25,069.2 on Monday, breaking an eight-day long winning streak.
"The index formed a bear candle which remained contained inside the previous session price range, signaling consolidation amid stock-specific action", stated Bajaj Broking Research.
Key resistance level for Nifty 50 lie at 25,200-25,250 levels while it will find support at near the 24,800 levels, "holding above the same will keep the bias positive." However, if the benchmark fails to trade in the 25,200-25,250 the correction phase will persist, it added.
"The near-term uptrend of Nifty remains intact. The present consolidation or weakness could be a buy on dips opportunity and eventually Nifty is expected to breakout of the hurdle at 25,150 levels soon", said Nagaraj Shetti, senior technical research Analyst at HDFC Securities.
A decisive close up to 25,250 level will "mark a trend reversal confirmation from the ongoing corrective phase and could potentially unlock further upside towards the 25,500 levels", according to Bajaj Broking.
Bank Nifty Outlook
"The Bank Nifty has formed a doji candle with a higher high and higher low signaling extension of the pullback for the nineth consecutive sessions", said Bajaj Broking.
After a phase of consolidation "around the crucial 200 days moving average, the index has absorbed selling pressure and is now positioning itself at the recent breakdown area of 54,800-55,000 levels", it added.
Resistance for the index is placed at 55,000 levels, while the key support is at around 53,500 levels.
