Trade Setup For Sept 17: Nifty Likely To Extend Gains, Key Resistance At 25,500
As long as the market is trading above 25,100, the bullish sentiment is likely to continue.
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Analysts forecast a bullish outlook for the Nifty 50 after Tuesday's strong 0.68% higher close at 25,239.10.
"The index has formed a sizable bull candle with a higher high and higher low, signalling extension of the up move. Index witnessed a follow through strength post a bullish crossover of the 20- & 50-days EMA in the daily chart as highlighted in last edition," Bajaj Broking Research said.
The benchmark will find key resistance at 25,500 and even beyond, as per Rupak De, senior technical analyst at LKP Securities. On the downside, support is placed at 25,000.
"A break below this level could signal the end of the current rally," De said. Although the analyst added that in the short term, the trend is likely to remain strong since the index has been sustaining above the 21 EMA. Moreover, the RSI has crossed its previous swing high, "further supporting bullish momentum".
"We are of the view that as long as the market is trading above 25,100/82000, the bullish sentiment is likely to continue," reiterated Shrikant Chouhan, head of equity research at Kotak Securities.
Holding above the 24,850 levels will keep the bias positive, according to Bajaj Broking Research.
According to the research firm, investors took comfort from progress in US trade talks. "Market participants now await the U.S. Federal Reserve’s policy decision for further cues", Bajaj Broking added.
Nifty Bank Outlook
The Nifty Bank saw a strong close above 55,100 levels on Tuesday. As per analysts, the upward trend for the sector is likely to persist. "The Bank Nifty has formed a bull candle with a higher high signaling extension of the pullback for the tenth consecutive sessions", said Bajaj Broking Research.
"A follow through strength above Tuesday high will open further upside towards 55,500 initially and then towards the 56,000-56150 levels in the coming sessions being the 61.8% retracement of the entire decline (57628-53561)", it added.
Immediate support for the sector is placed at 54,700 levels and key support is placed at 54000 levels as per the research firm.
