Trade Setup For Oct 17: Nifty May Retest 25,700 After Breakout; Support At 25,450
The daily chart indicates that Nifty has formed a strong bullish candle with a higher high and higher low, signalling continuation of the positive momentum.
The NSE Nifty 50 has broken above the September swing high and it will likely test the calendar-year high of 25,700 with last month's swing high of 25,450 as the support, according to analysts.
After more than a year of consolidation, the breakout signals that the bulls are back in command and potentially setting the stage for a strong performance in the near term, according to Rajesh Bhosale, equity technical analyst at Angel One. "The Nifty now appears poised to retest the calendar year high around 25,700, followed by the 26,000 mark, and eventually the all-time high near 26,300."
The daily chart indicates that Nifty has formed a strong bullish candle with a higher high and higher low, signalling continuation of the positive momentum, said Bajaj Broking.
The short-term market texture is bullish and there can be range-bound activity in near future due to temporary overbought conditions, according to Shrikant Chouhan, head of equity research at Kotak Securities.
The Bank Nifty is also signaling an upward hike, according to Bajaj Broking. "Bank Nifty continues to outperform the Nifty in the current leg of up move, with key private banking heavy weights Q2FY26 results lined up on coming Saturday," the brokerage added. While resistance will be at 57,000, support is placed at 55,600 and 57,000.
The earlier resistance near the Sept. 18 swing high of 25,470 has now turned into support, followed by 25,330, said Ponmudi R, CEO of Enrich Money.
Market Recap
The Nifty ended in the green for the second consecutive session on Thursday. At the close, the Sensex rose 862.23 points, or 1.04%, to 83,467.66, while the Nifty rose 261.75 points, or 1.03%, to 25,585.30.
"Indian markets witnessed a broad-based rally on Thursday, led by rate-sensitive sectors such as realty, auto, and banking, after minutes from the RBI’s recent monetary policy meeting signaled room for further rate cuts amid a sharp fall in both headline and core inflation," said Ponmudi.
Currency Update
Rising for the second straight session, the rupee surged 21 paise to close at 87.87 (provisional) against the US dollar on Thursday, buoyed by a softer American currency against major currencies and renewed risk-on sentiment among investors.
