Trade Setup For Sept. 9: Nifty Finds Immediate Support At 24,620

The market witnessed a volatile and range-bound session on Monday, with technical indicators indicating extended consolidation phase. The mood was lifted by GST rate cuts and the rising hopes of a US Federal Reserve rate cut, boosting risk appetite across equities. However, profit booking towards the end, led to markets ending near their days low.

The daily chart indicates that Nifty has formed a bear candlestick pattern on the daily chart with an upper shadow, Bajaj Broking said. This indicates that the index is likely to extend its range-bound movement and extend its consolidation phase observed over the last two weeks.

"Market participants are now turning their attention to upcoming inflation prints from both India and the US, which are expected to influence the US Federal Reserve’s monetary policy outlook," said Bajaj Broking.

Immediate support is identified at Friday’s low of 24,620, it added.

From a technical perspective, Nifty's short-term trend will remain volatile, pointed out Shrikant Chouhan, head of equity research at Kotak Securities. However, "a fresh uptrend rally is possible only after crossing the 24,900 level", Chouhan added.

"Going ahead, a sustained move above 25,000 could open the doors for an up-move toward 25,250–25,600, whereas a break below 24,500 may trigger a slide to 24,300–24,100," said Ponmudi R, CEO of Enrich Money.

The Bank Nifty also saw a positive day on Monday. According to Bajaj Broking, the index formed a high wave candle with a small real body and shadows in either direction highlighting intraday volatility.

The index continues to hover around the 200-day EMA. In the near term, the index is expected to remain range-bound between 53,500 and 55,000, suggesting a consolidation phase before any directional breakout. On the upside, the 54,800–55,000 zone remains a significant supply zone, marked by the confluence of the prior breakdown area and the 100-day EMA. This region is likely to act as a strong overhead resistance.

The benchmark equity indices ended flat on Monday after falling sharply in the last hour of trade, closing near the day's low.

The NSE Nifty 50 settled 32.15 points or 0.13% higher at 24,773.15 and the BSE Sensex closed 76.54 points or 0.09% up at 80,787.3. The Nifty rose as much as 0.58% during the day to 24,885.5, while the Sensex was up 0.57% to 81,171.38.

The rupee and the bond markets were closed on Monday on occasion of Eid. The Indian rupee tumbled to a new record low on Friday, falling 21 paise to trade at 88.36 against the US dollar, weighed down by persistent foreign fund outflows and global trade tensions.