Trade Setup For Oct 29: Nifty 50 Faces Resistance At 24,525–24,600 Levels
The Indian equity markets are showing signs of recovery as investors find optimism ahead of the Deepavali festival. The Nifty 50 index closed on a strong note, up by 158.35 points, or 0.65%, finishing at 24,339.15. The BSE Sensex also experienced an upward movement, gaining 602.75 points, which is a 0.76% increase, closing at 80,005.04.
Key Levels to Watch
As traders look for potential opportunities, the Nifty 50 is projected to face resistance at the levels of 24,525 to 24,600. Shrikant Chouhan, the head of equity research at Kotak Securities Ltd, indicates that if the index can push past these resistance levels, it might establish a stronger bullish trend.
Conversely, key support levels are identified between 24,200 and 24,100. Should the index drop below 24,100, there may be a shift in market sentiment, prompting traders to close long positions.
Market Analysis
The current trading pattern for Nifty 50 is characterized as a "spinning-top candlestick pattern," indicating a period of indecision among traders. According to Aditya Gaggar, director at Progressive Shares Brokers Pvt, a sustained move above 24,600 could signal a breakout from two important technical formations, namely a change in polarity and a falling wedge. On the downside, the strong support zone is expected to be around 24,100 to 24,180.
Bank Nifty Outlook
In relation to Bank Nifty, immediate support is noted at 50,382. If the Bank Nifty manages to stay above 51,590, an upward movement towards the 52,000 to 52,500 range may become possible, as suggested by Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C Mehta Investment Intermediates Ltd.
Market Performance Summary
After a five-session losing streak, both the Nifty 50 and BSE Sensex have recorded one of the best trading sessions in a month, largely attributed to the rebound in banking stocks. The rise in Indian indices was also supported by positive movements in Asian markets, following a decrease in oil prices and a significant drop in the Japanese Yen.
Currency Market Update
The Indian Rupee settled at Rs 84.07 per US dollar, showing little change from the preceding close of Rs 84.081. The currency market remains cautious amidst ongoing uncertainties regarding Middle Eastern tensions and the upcoming US elections. Market observers are closely monitoring any potential actions from the Reserve Bank of India, which is expected to maintain the rupee within the Rs 84.00 to 84.20 range to prevent further depreciation.
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