Trade Setup For Sept 24: Nifty Sees Immediate Resistance At 25,500–25,600
The immediate support base for the Nifty 50 is seen at 25,100–24,900.
The NSE Nifty 50 ended lower for the second straight session on Monday with investor sentiment cautious amid concerns over currency depreciation, foreign institutional investor outflows, and global policy uncertainties, according to analysts.
The benchmark, which closed 0.13% lower at 25,169.50, formed a second consecutive high wave candle with a lower high and lower low in the daily chart, Bajaj Broking said. "The Nifty on expected lines is seen consolidating in a range for the third session in a row. We expect it to extend the same and trade in the range of 25,500–25,000 in the coming sessions."
The immediate support base is seen at 25,100–24,900, which coincides with the confluence of the 20- and 50-day exponential moving averages. "A sustained breakout above this supply zone could trigger further upside in the coming weeks," the research firm added.
On the upside, the index faces immediate resistance at the 25,500–25,600 zone. Bajaj Broking holds that dips should be used as a buying opportunity.
"We maintain the overall positive bias and believe the ongoing corrective pullback presents a tactical buying opportunity within the broader uptrend," says the brokerage.
Bank Nifty Outlook
"The Bank Nifty has formed a bull candle highlighting buying demand around the 50 days EMA," said Bajaj Broking.
"The index is seen consolidating in the range of 56,000–54,700, thus working off the overbought condition in the daily chart developed after a strong 2,300 points up move in the last three weeks."
On the downside, immediate support is placed at 54,700 levels being the confluence of the last week low and 20 days EMA, while key support is placed at 54,700-54,900 levels being the key retracement of the entire decline, as per the firm. On the upside, the index faces initial resistance at the 56,000 zone.
"A sustained breakout above this supply zone could trigger a fresh leg of momentum, potentially opening the gates for a move towards the 57,000 marks in the coming weeks," the research firm added.
