Trade Setup for October 3: Nifty to Maintain Positive Momentum
The benchmark indices on Wednesday snapped their eight-day losing streak and ended in green. While Indian equity markets were closed on Thursday, analysts expect positive momentum to sustain on Friday, supported by an accommodative monetary policy, favourable monsoon season, and festive-led boost in demand.
Nifty’s Short-Term Trend Turns Decisively Bullish
Nifty’s short-term trend turned decisively bullish on Wednesday, confirming a near-term bottom reversal pattern. Immediate resistance levels to watch are 25,000 and 25,200 over the next week, while key support is placed at 24,600, according to Bajaj Broking Research.
Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, expects positive momentum to sustain, supported by an accommodative monetary policy, favourable monsoon season, and festive-led boost in demand.
Further Upside Expected
Further upside may also continue, potentially lifting the market up to 25,075, said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Bank Nifty Demonstrates Notable Strength
The Bank Nifty also ended on a firm footing, closing above 55,300. According to analysts, Bank Nifty has demonstrated notable strength over the past two sessions. The formation of a bullish Marubozu candle signals a strong and positive start to the month, underpinned by heavy buying interest in major private sector banks, said Bajaj Broking Research.
The near-term trend looks constructive, with the next resistance seen at 55,800–56,000. On the flip side, immediate support now shifts higher to 55,800 and the 100-day moving average at 55,881, said Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth tech firm.
Market Closes in Green
At the close, the Sensex rose 715.69 points, or 0.89%, to 80,983.31, while the Nifty was up 225.20 points, or 0.92%, to 24,836.30. The Nifty rose as much as 1.04% during the day to 24,867.95, while the Sensex was also up 1% to 81,068.43.
The upbeat outlook on growth and price stability came as a timely reassurance for investors, who had been jittery over the potential drag from steep US tariff hikes, said Ponmudi.
Rupee Recovers
The rupee recovered 9 paise from its all-time closing low to settle at 88.71 against the US dollar on Wednesday, as the Central Bank in its monetary policy decision announced a host of measures to support exporters and bring stability to the domestic unit.
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