Trade cautiously, 10,780 level crucial Nifty support; Buy JSPL for the short term

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26 Aug, 2025 12:21

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Jaydeb Dey

The Nifty ended Wednesday 0.58 percent higher at 10,772.05. It opened on a flat note before ending the session above its critical resistance of 10,750. The positive ending might be considered as a pullback from the oversold zone until and unless it breaks above 10,840 successively.

A sustained closing above 10,780 is necessary for the continuation of this pullback rally. The next critical resistances on the Nifty are placed around 10,810 and 10,840 levels.

On the Nifty hourly chart, it is still stuck in a down trending channel, which is necessary for a recovery towards 10,810 and 10,840 levels. A failure to breakout above 10,780 may again initiate a swift down move towards 10,700 levels.

Nifty patterns on multiple timeframes show it recovered from the oversold zone and ended in the green. A breach above 10,780 is a foremost condition for unfolding the next leg of the upmove towards 10,810 and 10,840 levels. However, failing to breakout 10,780 may again initiate a swift down move towards 10,700 levels. Extremely cautious trading is advised.

The Bank Nifty ended Wednesday 1.11 percent higher at 26,557.70. It ended the session with a bullish Marubozu candle. However, a break out above 26,600 is necessary before unfolding a rise to 26,900 levels. Downside supports are placed around 26,500 and 26,200 levels.

View on June 21 Bank Nifty Fut weekly expiry:

Bank Nifty Option Chain analysis in terms of percentage change in OI (at the end of yesterday's session) - Bank Nifty Fut (CMP- 26,597.50) ended in around 40 points premium against Bank Nifty (CMP- 26,557.70).

Maximum long OI build up in 26,600-PE followed by 26,700-PE, 26,500-PE, 26,400-PE and, 26,300-PE against minor long OI build up in 26,900-CE and, 26,800-CE ahead of today’s expiry suggests, Bank Nifty Fut is likely to face intraday selling pressure on rise around 26,700.

Opinion: Bank Nifty Fut is likely to see intraday selling pressure on rise around 26,700 while the downside pivotal support is placed around 26,300. However, successful breakout of 26,700 may unfold a swift up move towards 26,900. On a similar note, intraday trend is expected to remain volatile within the wide price band of 26,900-26,300.

This view is subject to change if and only if Bank Nifty Fut starts moving decisively above 26,900.

Based on thorough a technical study, the research firm recommends Jindal Steel & Power for the near term:

Jindal Steel & Power | Rating: Buy | Target: Rs 245, stop loss: Rs 215, Return: 7%

The stock rebounded from the previous double bottom area around Rs 220 and ended the session in green. Rebounding from oversold zone along while triple bottom formation in RSI on daily chart is seen might be a turning point.

Based on above mentioned observations, the firm recommends Jindal Steel & Power as a buy on dips for the short term upside target of Rs 245.

Disclaimer: The author is Technical Analyst at Stewart & Mackertich Wealth Management Ltd. The views and ideas expressed above may have been suggested to the clients of Stewart & Mackertich Wealth Management Ltd. It is advised that investors/traders should consult with their Certified Experts before taking any investment decision.