Trade Setup For Oct 15: Nifty Support At 25,050 As Consolidation Likely Ahead Of Diwali
A fresh sell-off is possible only if the level of 25,050 is breached, says Shrikant Chouhan of Kotak Securities.
The NSE Nifty 50 has found support at around 25,050 and 25,000, with analysts expecting consolidation to continue ahead of the festive season, according to analysts.
The daily chart indicates that Nifty has formed a black candle, with the Nifty continuing to hold above its short-term moving average and remains positioned above the key golden retracement level, according to Rajesh Bhosale, equity technical analyst at Angel One.
"A sustained move below this zone could trigger further weakness. On the flip side, the 25,300–25,350 band remains a stiff resistance zone, and a decisive breakout above this would likely resume the upward momentum," said Bhosale.
"We believe that, although the intraday market texture is weak, a fresh sell-off is possible only if the level of 25,050/81,800 is breached," said Shrikant Chouhan, head of equity research at Kotak Securities.
The Bank Nifty is also signaling towards consolidation. After recent sharp up move, the index has formed a high wave candle with a small body and shadows in either direction, indicating consolidation, according to Bajaj Broking. "While resistance will be at 57,000, support is placed at 55,600 and 57,000."
"As long as the index holds above 56,000, sentiment remains positive; a move above 56,700–56,900 could trigger a short-covering rally toward 57,300, while a break below 56,000 may drag it down to 55,500," said Ponmudi R, chief executive officer of Enrich Money.
Market Recap
The Nifty ended in the red for the second consecutive session on Tuesday, after a volatile and choppy trade. At the close, the Sensex slipped 297.07 points, or 0.36%, to 82,029.98, while the Nifty fell 81.85 points, or 0.36%, to 25,145.50. The Nifty fell as much as 0.66% during the day to 25,060.55, while the Sensex was also down 66% to 81,781.62.
Currency Update
The rupee depreciated 9 paise to 88.77 against the US dollar in early trade on Tuesday, weighed down by the broad strength of the American currency in the overseas market.
