Technical view: Crosing 25,450 crucial for Nifty to touch 25,650, strong support at 25,150

Sensex, Nifty settled higher in October 15 trade.

The equity benchmark indices Sensex and Nifty settled higher on Wednesday on buying in banking and financial shares, driven by a rally in Asian and European markets amid hopes of a rate cut by the US Federal Reserve later this month.

Sensex climbed 575.45 points, or 0.7 percent, to settle at 82,605.43. During the day, it jumped 697.04 points, or 0.84 percent, to 82,727.02. The NSE Nifty rose 178.05 points, or 0.71 percent, to close at 25,323.55.

According to Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities, the index came close to testing its 20-day exponential moving average (EMA) zone of 25,030–25,040 but managed to hold firmly above it. This, he said, indicates that the short-term trend remains positive and the recent dip was well absorbed by the market.

He noted that Tuesday’s low of 25,061 coincided with the midline of the Bollinger Bands, which often acts as dynamic support. The rebound from this level shows that the index is respecting its mean and that volatility remains contained within the current uptrend.

On the higher side, the 25,310–25,330 zone has been a stiff resistance area for the last four sessions, with Nifty repeatedly facing selling pressure near this range. Although the index managed to move past this hurdle during the day, it again saw rejection at higher levels. A firm close above this zone will be key for the index to maintain its upward momentum, Shah said.

The Relative Strength Index (RSI), which had dipped to 55.08 in the previous session, has rebounded to 60.49, showing improving bullish momentum. The Moving Average Convergence Divergence (MACD) continues to trade above both the zero and signal lines, reflecting a constructive medium-term trend.

In terms of levels, Shah said the 25,450 mark will act as immediate resistance for the Nifty, coinciding with the previous swing high of September 18. A sustained move above 25,450 could extend the rally towards 25,650, while on the downside, the 25,200–25,150 zone remains a crucial support area.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said a small negative candle formed on the daily chart with minor upper and lower shadows, indicating choppy movement near a crucial resistance zone.

He added that the current market action suggests a breather after an eight-session rally. “The near-term uptrend of Nifty remains intact. The present consolidation or weakness could be a buy-on-dips opportunity, and eventually, Nifty is expected to break out above the 25,150 hurdle soon,” Shetti said.

Immediate support is placed at 24,900, while a sharp breakout above 25,150 could open the next upside target of 25,400–25,500, he added.

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