The Nifty 50 bounced back and closed above 24,700 for the first time in over a week, rising more than half a percent on September 3 amid stimulus hopes from the potential GST rate rationalisation. The index also climbed above the 100-day EMA (24,630) and the midline of the Bollinger Bands (close to 24,700), hitting the 20-day EMA intraday.
Hence, if the index sustains above the 24,700–24,750 zone in the upcoming sessions, 24,800 will act as the immediate resistance. A breakout above this could open the way towards the 25,000 mark. On the downside, immediate support is placed at 24,600, followed by the key support at 24,500, according to experts.
After early volatility, the Nifty 50 gained strength in the afternoon and extended the rally as the day progressed. The index hit an intraday high of 24,737 (which coincides with the 20-day EMA) before closing the session at 24,715, up 135 points or 0.55 percent, with above-average volumes.
It formed a bullish candle with a lower shadow on the daily charts, indicating buying interest at lower levels. The RSI inched higher to 48.51 and is on the verge of a bullish crossover. The MACD also moved upward, though it remained below the signal line. Weakness in the MACD histogram faded, while the Stochastic RSI showed a positive crossover — all indicating the possibility of upward momentum, though requiring significant bullish strength.
“A sustained move beyond 24,750–24,800 would open the way for the bulls to target 24,900–25,000, and if supported by global and domestic cues (especially the GST Council outcome), Nifty could extend towards 25,200 and higher in the near term,” said Rajesh Bhosale, Equity Technical Analyst at Angel One.
On the downside, according to him, the matching lows around 24,500 act as immediate support, while the 24,400–24,350 zone remains sacrosanct.
Traders should keep a close watch on these levels and continue with a buy-on-dips strategy, given the strength in broader markets, he advised.
The weekly options data also suggests that the 24,600–24,500 zone is expected to act as strong support for the Nifty 50, with resistance likely at 24,800–25,000 levels.
The 25,000 strike holds the maximum Call open interest, followed by the 25,500 and 24,800 strikes. Maximum Call writing was seen at the 25,000 strike, followed by the 25,500 and 24,900 strikes. On the Put side, the maximum open interest was placed at the 24,500 strike, followed by the 24,600 and 24,700 strikes, with the maximum Put writing also at these same levels.
Bank Nifty
The Bank Nifty also rebounded sharply, rising 407 points or 0.76 percent to close at 54,068, but remained rangebound for the fourth consecutive session. The index consistently faced resistance in the 54,100–54,200 zone and found support at the upward-sloping trendline and the 200-day EMA (53,582), though it remained below its 20-, 50-, and 100-day EMAs.
Momentum indicators continued to signal weakness. The RSI jumped to 37.16 but remained in a bearish crossover. The MACD stayed negative, quoting below both its zero line and signal line, though the Stochastic RSI maintained positive crossover.
“Looking ahead, the 53,600–53,500 zone will act as crucial support. A sustained move below 53,500 could trigger a sharper decline towards 53,000, followed by 52,500 in the short term,” said Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.
On the upside, he added, the 54,300–54,400 zone will serve as a key resistance.
Meanwhile, the India VIX, the fear index, dropped sharply by 4.12 percent to 10.93 and remained below all key moving averages, giving comfort to the bulls.
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