Market Update: Nifty 50 and Bank Nifty are on bullish trend
The Nifty 50 closed above the 26,000 mark on September 25, spurred by late buying enthusiasm, marking a positive trend in daily charts. The index formed a bullish candlestick pattern that continued to rise, with analysts believing signals continue to strengthen. If the Nifty 50 holds above 26,000, it could go to 26,100, the support stood at 25,800. Similarly, Bank Nifty will also rally to 54,500 and the 53,750 level could act as support.
On Wednesday, the Nifty freshened its all-time high finish of 26,004, up 64 points, ahead of the 50-month F&O end period. The Bank Nifty followed suit, rising 133 points to 54,102. In the overall market breadth, NSE declined 1,475 shares and advanced 1,008 shares.
Nifty method and technique
Jatin Gedia, Technical Analysis Analyst at Sherkhan by BNP Paribas:
On daily charts, the Nifty tested its support zone near 25,850–25,875 and started rising again. The hourly rates took the pressure off of sales, preventing further declines. The Nifty will continue its ascent, and could reach the upper weekly Bollinger bar of 26,300. Despite some reinforcement, the underlying tone remains moderate, and a dip near the support zone should be viewed as a buying opportunity.
- Key Resistance: 26,080, 26,100
- Key Support: 25,850, 25,800
- Strategy: Buy Nifty with a stop-loss at 25,870, aiming for a target of 26,100.
Vidyan S. Sawant, Senior Research Manager, GEPL Capital;
The Nifty’s positive momentum continued this week, with the index hitting a new all-time high of 26,011 for the third consecutive week, reinforcing the bullish trend but small candles on daily charts suggest perhaps a temporary pause. The RSI remains strong above 65, indicating continued positive performance in the short to medium term. There appears to be 25,750 in emergency relief, and extra relief of 25,400 and 25,000. 26,450 is the next higher barrier, and it can be raised to 26,700.
- Main opposition: 26,050, 26,450
- Special grants: 25,750, 25,400
- Strategies: Aim for 26,450 and buy Nifty above 26,050, with a stop-loss of 25,850.
Shitiz Gandhi, senior technical research analyst at SMC Global Securities;
The Nifty is expected to go to 26,200 on the upward side and is expected to find firm support in the 25,850–25,750 area. Investors want to hunt for possibilities to purchase on declines close to 25,900.
- Key Resistance: 26,100, 26,200
- Key Support: 25,850, 25,750
- Strategy: Buy on dips near 25,900, with a stop-loss below 25,750, and a target of 26,150.
Bank Nifty: Outlook and Strategy
Jatin Gedia, Technical Analysis Analyst at Sherkhan by BNP Paribas:
The Bank Nifty strengthened on positive bias as the price action eased on the back of growth late next month. This combination is likely to continue to worsen and is expected to rise to 55,000 in the short term. The trend is similar, with substantial support at 53,800–53,600.
- Key Resistance: 54,600, 55,000
- Key Support: 54,000, 53,900
- Strategy: Buy Bank Nifty with a stop-loss at 53,900, targeting 54,600–55,000.
Vidyan S. Sawant, Senior Research Manager, GEPL Capital;
Like the broader market, the Bank Nifty is trading near a record high of 54,247, underlining its strength. The index recently emerged from a saucer pattern of more than human life expectancy, indicating that new growth is gaining momentum. A weekly RSI trend above 65 confirms strong strength, with immediate resistance at 54,555 and a possible target of 56,000.
- Key Resistance: 54,555, 55,000
- Key Support: 53,700, 53,200
- Strategy: Buy Bank Nifty at CMP, targeting 55,000 with a stop-loss at 53,700.
Shitiz Gandhi, senior technical research analyst at SMC Global Securities;
The continued trend is seen in the opposite direction of Bank Nifty. With increased hope, this is anticipated to reach the 55,000 mark in the near future. Important support levels between 53,800 and 53,600 should cause investors to exercise caution.
- Key Resistance: 54,500, 54,800
- Key Support: 53,900, 53,600
- Strategy: Buy Bank Nifty on dips near 53,900, with a stop-loss below 53,600, targeting 54,600.
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