Trade Setup For Oct. 8: Nifty Support At 25,000–24,950
Failure to move above 25,220 on a closing basis can lead to some consolidation in the range of 24,700-25,200.
Buying on intraday dips and selling on rallies will be the ideal strategy, with the key support levels being the 20-day simple moving average, according to analysts.
The 25,000–24,950 zones will act as key support levels for traders, according to Shrikant Chouhan, head of equity research at Kotak Securities.
Chouhan said that as long as the market remains above these levels, the bullish sentiment is likely to continue.
"Going ahead, a follow-through strength above Tuesday high 25,220 will signal extension of the current up move towards 25,400-25,500 levels in the coming week, being the trendline resistance, joining the major highs of June and September 2025," Bajaj Broking Research said.
It stated that failure to move above 25,220 on a closing basis will lead to some consolidation in the range of 24,700-25,200.
"On the flip side, 25,200 and 25,275 would serve as key resistance levels for the bulls. For day traders, buying on intraday dips and selling on rallies would be the ideal strategy," Chouhan said.
He further said that the uptrend could become vulnerable below 24,950. Bajaj Broking said that its bias remains positive and dips should be used as a buying opportunity.
Bank Nifty
The Bank Nifty formed a bull candle with shadows in either direction, which maintained higher high and higher low, signalling extension of the up move, according to Bajaj Broking Research.
"Going ahead, a follow-through strength above 56,500 levels will open further upside towards 57,300 levels in the coming weeks. Failure to move above 56,500 on a closing basis will lead to some consolidation in the range of 56,500-55,500," Bajaj Broking said.
Analysts at Bajaj Broking see the bias as remaining positive and said that dips should be seen as buying opportunities.
Market Recap
The benchmark indices of the NSE Nifty 50 and BSE Sensex on Tuesday exhibited gains for a fourth consecutive session, after which it closed flat. The sectoral indices closed on a mixed note.
The Nifty index closed near the 25,100 mark. IndusInd Bank and Bajaj Auto gained the most in this index. Axis Bank and Tata Motors fell over 2% in trade; emerging as the top losers in Nifty.
Currency Update
The rupee ended flat at 88.78 against the US dollar on Tuesday, according to Bloomberg.
