Technical View: Only a move above Tuesday's high could take Nifty to 25,500, Bank Nifty may hit 57,300 if it crosses 56,500

Technical View: Only a move above Tuesday's high could take Nifty to 25,500, Bank Nifty may hit 57,300 if it crosses 56,500

Benchmark indices Sensex and Nifty snapped their four-day gains on October 8 to close marginally lower. The Nifty 50 edged down 0.25% to 25,046.15, while the BSE Sensex shed 0.19% to 81,773.66. The two indexes rose about 2% each in the last four sessions.

Fourteen of the 16 major sectors logged losses on the day. The broader small-caps and mid-caps fell 0.5% and 0.7%, respectively.

Bank Nifty dropped about 0.5%, snapping a six-session rally in which it had gained 3%.

Looking ahead, an analyst said "buy on dips" could be a decent strategy for traders.

"Markets traded sideways on Wednesday and ended with a mild downtick, taking a breather after the recent surge. After a quiet start, the Nifty moved within a narrow range for most of the session and eventually settled near the day’s low at 25,046.15. On the sectoral front, most sectors, barring IT, closed lower, with realty and auto among the top losers. The broader indices also lost nearly half a percent each, mirroring the overall sectoral weakness.

"With the earnings season underway, focus now shifts to TCS’s quarterly results, scheduled for Thursday, October 9. As IT remains one of the lagging sectors, market participants will closely watch how sentiment evolves post its numbers.

"On the index front, indications point toward further consolidation, albeit with a positive bias. We continue to maintain a “buy on dips” strategy and recommend focusing on opportunities with a favorable risk-reward setup, particularly within sectors showing consistent relative strength such as auto, metals, and PSUs, while remaining selective in others," said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Meanwhile, regarding Nifty, Bajaj Broking Research said only a move above Tuesday’s high of 25,220 would open further upside towards 25,400–25,500.

"The index in the daily chart formed a small bearish candle with shadows in either direction signaling consolidation after a 600-point rally over the preceding four sessions. Going ahead, index is likely to consolidate in the range of 25,200–24,800 thus forming a base after the recent up move. On the higher side only a move above Tuesday’s high of 25,220 would open further upside towards 25,400–25,500 in the coming week being the trendline resistance connecting the major highs of June and September 2025. On the downside, support is placed at 24,800-24,900 levels being the confluence of the 20- & 50-day EMA and the 61.8% retracement of the last up move (24,588-25,220)," said Bajaj Broking Research.

Regarding Bank Nifty, the brokerage said crossing 56,500 would open further upside towards the all-time high of 57,300-57,600 in the coming week.

"Bank Nifty formed a high wave candle with a small real body and shadows in either direction signaling consolidation amid stock specific action after more than 2300 up move in the last 6 sessions. Going ahead, index is likely to consolidate in the range of 56,500-55,500 thus forming a base after the recent up move. On the higher side only a move above Tuesday’s high of 56,500 would open further upside towards the all-time high of 57,300-57,600 in the coming week. On the downside, support is placed at 55,500-55,000 levels being the confluence of the 20- & 50-days EMA and the 61.8% retracement of the last up move (54,227-56,502). We believe bias remains positive and dips should be used as a buying opportunity," said Bajaj Broking Research.