Indian benchmark equity indices closed higher on Tuesday, wrapping up a session of steady trading. Global stocks rallied after an overnight surge in U.S. markets, despite investor concerns over the size of the Federal Reserve's upcoming interest rate cut.
At the close, the BSE Sensex, which opened higher at 81,768.72, fluctuated between a high of 82,196.55 and a low of 81,445.30, finishing the session at 81,921, up 361 points or 0.44%.
Nifty Outlook and Strategy
Ashish Kyal, CEO, Waves Strategy Advisors
Nifty has been moving in a volatile fashion in recent days without a clear direction. After forming a low near 24,753, the index managed to pull back above 25,000. A breach above 25,180 could trigger a move toward lifetime highs. For now, we expect sideways action as long as the 25,180–24,920 range holds. A break of either level could result in a trending move.
Key Resistance: 25,180 (Futures)
Key Support: 24,920 (Futures) Strategy: Long positions can be initiated above 25,180 with a stop loss at 25,080 and targets of 25,280 followed by 25,350. Stop Loss: 25,080 (Futures)
Dhupesh Dhameja, Derivative Research Analyst, Samco Securities
Nifty bounced back from its 20-day EMA, closing above the 25,000 mark. Strong support has formed around 24,800-24,900, where heavy put writing has been observed. On the upside, resistance is expected at 25,300. Given this neutral setup, a "Range Selling" strategy is favorable if the index stays above 24,700.
Key Resistance Levels: 25,200, 25,300, 25,500 Key Support Levels: 24,900, 24,800, 24,500 Strategy: Adopt a Short Strangle
Sell 25,300 Call (19th Sep Expiry) at Rs 75
Sell 24,800 Put (19th Sep Expiry) at Rs 79
Expected Breakeven: 24,647 and 25,453 Max Profit: Rs 3,834 Stop Loss: Exit when loss crosses Rs 2,000
Riyank Arora, Technical Analyst, Mehta Equities Ltd.
Nifty is facing immediate resistance at 25,130, with further hurdles at 25,350. Support is at 24,900, and the major support lies at 24,750. With a positive outlook, traders should look to buy above 25,130, targeting 25,350 and 25,500. A strict stop loss at 24,900 is recommended to manage downside risks.
Immediate Support: 24,900 and 24,750 Immediate Resistance: 25,130 and 25,350 Strategy: Buy above 25,130Stop Loss (SL): 24,900 Target: 25,350 and 25,500
Bank Nifty Outlook and Strategy
Ashish Kyal, CEO, Waves Strategy Advisors
In the previous session, Bank Nifty opened with a gap-up but erased early gains in the first hour. The index fluctuated throughout the day, forming a neutral candle on the daily chart, and closed with a minor gain of 0.19% at 51,365. The trend remains unclear, and further price action will dictate the next move.
Key Resistance: 51,500 (Futures) Key Support: 51,100 (Futures) Strategy: Long positions can be taken above 51,500 (Futures) with a stop loss at 51,200 and a target of 51,800.
Dhupesh Dhameja, Derivative Research Analyst, Samco Securities
The Bank Nifty index found support from its upward-sloping trendline and reclaimed its 20-day EMA, signaling buying interest at lower levels. Strong support has formed around 50,300-50,200, with resistance at 51,300-51,500. A breakout above 51,500 is needed for further upside.
Key Resistance Levels: 51,300, 51,500, 51,800
Key Support Levels: 51,000, 50,700, 50,500
Strategy: Short Strangle:Sell 51,800 Call (18th Sep Expiry) at Rs 165
Riyank Arora, Technical Analyst, Mehta Equities Ltd.
Bank Nifty broke out above 51,100, closing with strength. Immediate resistance lies at 51,700 and 51,800, while support is seen at 50,900 and 50,800. The trend remains positive, with strong buying momentum. Traders should buy at the current price of 51,272, targeting 51,800 and 52,000, while using a stop loss at 50,800.
Immediate Support: 50,900 and 50,800 Immediate Resistance: 51,700 and 51,800 Strategy: Buy at CMP 51,272Stop Loss (SL): 50,800 Target: 51,800 and 52,000
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