Trade Setup For Sept 25: Nifty Support Slips To 24,900 As Bears Gain Upper Hand
Analysts expect resistance in the 25,500-25,600 zone on the upside.
The NSE Nifty 50 ended lower for the fourth straight session on Wednesday, with Bajaj Broking Research seeing immediate support at about 24,900 levels.
The Nifty formed a bearish candle with a lower high and lower low, indicating continued profit booking, according to the research arm of the brokerage.
"As anticipated, the Nifty is consolidating within a defined range and is expected to continue trading between 25,000 and 25,500 in the near term," Bajaj Broking Research said.
Conversely, Osho Krishan, senior analyst of technical and derivatives, Angel One Ltd. saw a strong technical support of 24,915-24,890 (confluence of 50 DEMA and a bullish gap on the daily chart), which is likely to act as sacrosanct support and could provide a breather.
"On the flip side, the recent breakout zone of 25,150-25,200 is likely to be viewed as an intermediate hurdle, followed by the 25,300 zone in the near term," Krishnan said.
"Considering the current heightened uncertainty, it is advisable to exercise selectivity in stock selection from a trading perspective," he added.
Krishnan said that traders should maintain light positions and remain informed about global developments that may serve as catalysts for trend formation in markets.
Bajaj Broking Research expects resistance in the 25,500-25,600 zone on the upside.
"Despite the ongoing pullback, we maintain a positive overall bias and view the current decline as a buying opportunity within the broader uptrend," it added.
Bank Nifty Outlook
Bank Nifty formed a bearish candle with a lower high and lower low on the daily chart, indicating a lack of follow-through to Tuesday’s pullback, according to Bajaj Broking Research.
"The index appears to be unwinding its overbought conditions following a sharp 2,300-point rally over the past three weeks," it said.
Immediate support was seen at 54,700–54,900 by Bajaj Broking, which aligns with last week’s low and the 20-day EMA.
A more significant support level is placed near 54,000, representing a key retracement level of the recent rally.
On the upside, the index faces initial resistance near the 56,000 marks. A decisive breakout above this level could pave the way for a fresh uptrend, potentially targeting the 57,000 level in the coming week, Bajaj Broking said.
The research agency reported that its broader view "remains positive", and it believes that the current consolidation phase offers a buying opportunity within the ongoing uptrend.
