The Nifty 50 stayed well above the 24,700 level for the third consecutive session after witnessing a range of more than 200 points during the day on September 5. It closed flat with a positive bias. For the week, the index gained 1.3 percent, snapping a two-week losing streak by holding well above the upward-sloping support trendline (24,400–24,450).
The index also sustained slightly above the 20-day EMA (24,734), despite bearish candle formations for another session, while testing the 100-day EMA intraday. Furthermore, it held the midline of the Bollinger Bands (24,707) for the third straight day. Hence, according to experts, 24,700 is expected to act as immediate support for the index. Below this, 24,400 (the low of the current week) remains a crucial support level; a decisive breakdown below this could bring bears into action. On the higher side, 25,000 is likely to be a key hurdle for a potential new leg of the upmove toward the 25,200–25,500 zone.
The Nifty 50 opened above 24,800 and tested an intraday high of 24,832 but failed to sustain those gains. The index remained rangebound for the remainder of the session and closed at 24,741, up 7 points, forming a bearish candle with a long lower shadow on the daily charts—signaling buying interest at lower levels. On the weekly timeframe, it formed a bullish candle with a long upper shadow, indicating a positive trend but some pressure at higher levels.
Overall, the index remained within the previous week’s price range, highlighting consolidation amid stock-specific action. In the coming week, “Nifty is likely to consolidate in the range of 24,400–25,000 amid stock-specific movements,” analysts at Bajaj Broking said.
On the higher side, a move above 25,000 will open the door for further upside towards the key resistance zone of 25,200–25,250, they added.
According to them, immediate support is placed at 24,400–24,337, a confluence of recent lows and the key Fibonacci retracement area. “A breach below this zone will signal an acceleration of the decline toward the key support area of 24,000 in the coming weeks, which is the confluence of the 52-week EMA and the previous major breakout area,” they said.
The RSI stood at 49.31, and the Stochastic RSI maintained a positive crossover. The MACD gave a bullish crossover, with the histogram becoming increasingly healthy—signaling an improving trend.
Weekly options data suggest that 24,500 is expected to act as a key support zone, with 25,000 being the crucial resistance level for next week.
On the Call side, the maximum open interest was at the 25,000 strike, followed by 25,500 and 24,900. Maximum Call writing was seen at the 25,100 strike, followed by 25,500 and 24,800.
On the Put side, the 24,000 strike held the maximum open interest, followed by 24,500 and 24,600. Maximum Put writing was seen at the 24,000 strike, followed by 24,650 and 24,800.
Bank Nifty
The Bank Nifty also witnessed similar price action, rising 39 points to 54,115, and forming a bearish candle with a long lower shadow on the daily charts—indicating buying interest at lower levels. It still held above the 54,000 level for the third straight day, which remains immediate support, followed by 53,600 (the 200-day EMA), considered a key support.
“For Bank Nifty, the zone of 54,500–54,600 will act as an immediate hurdle,” said Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities.
On the downside, the 200-day EMA zone of 53,600–53,500 will act as crucial support. A sustainable move on either side is likely to trigger a trending move in the index, he added.
Meanwhile, the India VIX continued to remain in the lower zone, falling 0.67 percent to 10.78, marking a fresh six-week low. While this gives comfort to bulls, it also signals caution for a potential sharp move in either direction.
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