Will Nifty extend gains to sixth session? Key levels to watch on September 10

In the previous session, the market sentiment was largely buoyed by IT stocks

Domestic equity benchmarks Nifty 50 and Sensex are set to open with gains, extending the positive momentum on Wednesday, September 10.

In the previous session, the market sentiment was largely buoyed by IT stocks, which staged a strong rebound. The rally was led by Infosys, which surged over 4 percent after the company announced that its board would consider a share buyback later this week.

“We maintain a positive yet cautious outlook on the Nifty and suggest closely tracking the performance of banking and IT majors for further cues,” said Ajit Mishra – SVP, Research, Religare Broking.

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On Tuesday, September 9, foreign institutional investors (FIIs/FPI) net bought Indian equities worth Rs 2,050 crore, while domestic institutional investors showed less activity with net buying of Rs 83 crore-worth equities, as per provisional data on NSE. The last time FII/FPIs showed such strength in buying higher than DIIs, was June 26.

Key levels to watch

A breakout above the September 4th high of 24,981 could trigger short covering and fuel a rally toward the next hurdle at 25,150, though the presence of a double-top formation at those levels may limit further upside.

“Conversely, failure to sustain above 24,950 could invite selling pressure, pulling the index down toward the support zone at 24,800–24,750 (backed by Put OI), with additional cushioning from the 200-day EMA near 24,631. The next directional move will likely hinge on whether volumes confirm a breakout, as subdued activity suggests the risk of heightened intraday volatility,” said Ponmudi R, CEO of Enrich Money.

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