Trade Setup For Oct 16: Nifty Poised For Further Upside; Finds Key Support At 25,200
The NSE Nifty 50 will continue its upward movement as the index “moved up smartly” and shrugged off the negativity from the previous session, according to analysts.
The daily chart indicates that Nifty has formed a bullish candle with a higher high and higher low, signalling lack of follow through to previous session’s bearish engulfing candle, highlighting continuation of the positive momentum.
Key Support And Resistance Levels
The index appears comfortable trading above the 21-EMA (25,061), indicating a bullish trend. In the short term, the index may move towards 25,500–25,600, according to Rupak De, senior technical analyst at LKP Securities.
We believe that 25,200 would act as a key support zone for day traders. As long as the market trades above this level, the positive sentiment is likely to continue, said Shrikant Chouhan, head of equity research at Kotak Securities. For more information on Nifty today, visit our website.
Bank Nifty Outlook
The Bank Nifty is also likely to continue its positive rally as the index has formed a bull candle with a higher high and lower low. This indicated the continuation of the positive momentum, according to Bajaj Broking.
Index has immediate resistance at 57,000 levels. A move above the same will open further upside towards all time high placed around 57,600 levels, the brokerage said.
The appearance of doji and high-wave candles underlines the current pause in momentum. A breakout above 57,000–57,300 could trigger renewed upside, while support remains intact around 56,300–56,500, said Ponmudi R, chief executive officer of Enrich Money.
Market Close
The Nifty ended in green on Wednesday snapping its two-day fall. At the close, the Sensex slipped 575.45 points, or 0.70%, to 82,605.43, while the Nifty rose 178.05 points, or 0.71%, to 25,323.55.
The Nifty moved up smartly, shrugging off the negativity from the previous session. By the end of the day, the index managed to close above the resistance zone of 25,250–25,300, said Rupak.
Rupee Movement
The rupee bounced back sharply by 75 paise to close at 88.06 (provisional) against the US dollar on Wednesday, posting its biggest intraday gain in nearly four months, due to likely intervention by the RBI and a surge in the domestic markets.
For more information on Sensex news and Indian stock market, visit our website.
Conclusion
In conclusion, the NSE Nifty 50 is poised to continue its upward movement, with key support at 25,200. The Bank Nifty is also likely to continue its positive rally, with immediate resistance at 57,000 levels. For more information on Q1 results and stock market analysis, visit our website.