Trading Plan: Where is Nifty headed towards after record high?

Market heavyweights including Reliance Industries, HDFC Bank, and major IT firms drove the upward momentum on September 12. The Nifty Bank Index surged by 762 points to 51,772, and the Midcap Index climbed 702 points to close at 59,640.

The benchmark equity indices ended September 12's trading session in positive territory. The NSE Nifty 50 gained 470.45 points, or 1.89 percent, to settle at 25,388.90, while the BSE Sensex jumped 1,439.66 points, or 1.77 percent, to 82,962.71.

Broader indices also ended in positive territory, led by gains in large-cap and mid-cap stocks. The Bank Nifty index ended 762.4 points higher, or 1.49 percent, at 51,772.4. Among sectoral indices, metal and auto stocks outperformed, while media and realty stocks posted marginal gains.

Market heavyweights including Reliance Industries, HDFC Bank, and major IT firms drove the upward momentum. The Nifty Bank Index surged by 762 points to 51,772, and the Midcap Index climbed 702 points to close at 59,640.

Nifty Outlook and Strategy

Chandan Taparia, head of equity derivatives & technicals at Motilal Oswal Financial Services

"The Nifty index has broken out of its range on the daily chart, with bulls dominating the second half of the session and driving the index up by 500 points within a couple of hours. Over the last four sessions, the index moved nearly 700 points, from 24,753 to 25,433. The market trend remains positive after this surge, forming a healthy bullish candle on both daily and weekly charts. The Nifty must hold above the 25,250 level to see further up moves towards 25,600 and 25,750 zones, while support has shifted higher to 25,150 and 25,000 zones."

Support Levels: 25,100 / 25,000
Resistance Levels: 25,600 / 25,750
Strategy: Buy with support at 25,250 for an upside target towards 25,600 and 25,750.

Kunal Kamble, senior technical research analyst at Bonanza

"The Nifty Index has managed a positive weekly expiry, closing at an all-time high with a strong bullish candle indicating an uptrend. The index took support at the 20 EMA, bouncing back above it, which also confirms the upward movement. The RSI has started moving higher, supporting price action. At the monthly expiry, the highest open interest (OI) on the put side is at 25,000, signaling strong support, while on the call side, the highest OI is at 25,500, indicating resistance. This suggests the market could move towards 25,500 levels."

Support Levels: 25,000 / 24,800
Resistance Levels: 25,500 / 25,800
Strategy: Buy with support at 25,000 for a target of 25,600 and 25,800.

Mandar Bhojane, equity research analyst at Choice Broking

"The Nifty broke out of a wide range to reach a new all-time high of 25,433.35. After opening flat to positive, the index rebounded sharply from the 25,000 level and broke out of its range with significant volume, driven by short-covering during the last hour on weekly expiry day. If the index sustains above 25,400, it could move up to 25,600 and 25,800 levels, while the 25,000 level will act as immediate support, offering a buying opportunity."

Support Levels: 25,000 / 24,800
Resistance Levels: 25,600 / 25,800
Strategy: Buy on dips near 24,950 for a target of 25,600 and 25,800.

Stop-loss at 24,800 on a closing basis.

Bank Nifty Outlook and Strategy

Chandan Taparia, head of equity derivatives & technicals at Motilal Oswal Financial Services Ltd:

"Bank Nifty surpassed its previous hurdle of 51,750 and saw a decisive up move fueled by heavyweights. The index has been making higher highs over the past five weeks, gradually shifting its base higher. It formed a strong bullish candle on both daily and weekly charts and closed on a strong note after a prolonged period of underperformance. Bank Nifty has gained over 1,500 points in the last four sessions, and the momentum is expected to continue. It must now hold above 51,500 for an up move towards 52,250 and 52,500 zones, while support is seen at 51,250 and 51,000 levels."

Support Levels: 51,250 / 51,000
Resistance Levels: 52,250 / 52,500
Strategy: Buy with support at 51,250 for an upside target towards 52,250 and 52,500.

Kunal Kamble, senior technical research analyst at Bonanza

"The Banking Index closed above the 51,500 level, which had been acting as strong resistance. This breakout is confirmed by the index closing above its 5-week average, signaling a positive shift. The index took support from the 20 and 50 EMAs and closed above these moving averages, indicating an uptrend. The RSI closing above its average supports the bullish price action. On the options front, the highest OI on the put side is at 51,000, signaling strong support, while on the call side, the highest OI is at 52,000, indicating fresh resistance. This suggests the index could trade above 52,000, provided it holds above 51,000."

Support Levels: 51,300 / 51,000
Resistance Levels: 52,000 / 52,350
Strategy: Buy with support at 51,000 for a target of 52,000 and 52,350.

Mandar Bhojane, equity research analyst at Choice Broking

"On the daily chart, Bank Nifty has formed a descending triangle breakout pattern and successfully retested this breakout with strong volume, indicating a bullish reversal. If the index sustains above 52,000, it could move up to 53,000 and 54,000 in the short term. On the downside, 50,900 serves as immediate support, offering a buying opportunity for traders and investors. The RSI, currently at 57.67, is trending upward, indicating strengthening bullish momentum, while the Stochastic RSI shows a positive crossover emerging from the oversold region, reinforcing a continued upside."

Support Levels: 51,000 / 50,600
Resistance Levels: 52,400 / 53,000Strategy: Buy on dips near 50,900 for a target of 52,400 and 53,000. Stop-loss at 50,500 on a closing basis.

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