Trade Setup For Sept. 10: Bullish Sentiment Likely If Nifty Trades Above 24,800 Support
Bajaj Broking expects Nifty Bank to remain range-bound between 53,500 and 55,000.
Technical indicators are indicating a positive consolidation phase for the NSE Nifty 50, with the market mood being lifted by GST rate cuts and the rising hopes of a US Federal Reserve rate cut.
The daily chart indicates that Nifty has formed a doji candle with a higher high and a higher low, said Bajaj Broking. This indicates that the index is likely to consolidate amid stock specific action on the weekly expiry session.
From a technical perspective, Nifty is experiencing positive consolidation, pointed out Shrikant Chouhan, head of equity research at Kotak Securities. "We are of the view that currently the market is experiencing positive consolidation. For day traders, the key support zone is now 24,800-24,750," Chouhan added.
If the index trades above this, the markets bullish sentiment will continue.
"Additionally, weakness in the Indian rupee against the dollar also lifted sentiments towards the IT sector stocks. With IT leading the charge, investor mood has shifted towards cautious optimism, balancing global tailwinds with domestic technical hurdles," said Ponmudi R, CEO of Enrich Money.
The Bank Nifty mirrored the broader market, opening higher and touching an intraday peak of 54,350 before encountering selling pressure. According to Ponmudi R, the 54,000 serves as the immediate floor. Additionally, the RSI at 29.8 signals oversold conditions, suggesting scope of recovery if the index holds above 54,000.
"Bank Nifty formed a small bear candle with a small lower shadow which remained contained inside previous session price range signaling continuation of the consolidation around the 200-day EMA," said Bajaj Broking. The brokerage expects Nifty Bank to remain range-bound between 53,500 and 55,000.
Market Recap
The benchmark equity indices ended higher on Tuesday, led by the share price of Infosys Ltd. Both the indices closed 0.39% higher.
The NSE Nifty 50 settled 95.45 points higher at 24,868.6 and the BSE Sensex closed 314.02 points up at 80,101.32.
The Nifty rose as much as 0.48% during the day to 24891.80, while the Sensex was up 0.49% to 81181.37.
Currency Update
The rupee pared initial gains to settle 3 paise lower at 88.12 against the US dollar on Tuesday, tracking persistent foreign portfolio outflows and global trade tensions.
