Nifty Support Moves to 24,400 Levels: Trade Setup for September 30
The NSE Nifty 50’s support has moved to 24,400 levels after the Indian benchmark indices closed lower for a seventh straight session on Monday, according to analysts. This decline has raised concerns among investors, who are now awaiting the RBI policy announcement this week.
Nifty Forms Bearish Candle
On the daily chart, Nifty has formed a significant bearish candle with an upper shadow, indicating that bulls failed to sustain the earlier rebound. This price action reflects selling pressure at higher levels and suggests a continuation of near-term weakness in the sessions ahead, said Bajaj Broking Research.
The Nifty will find immediate support between 24,530 and 24,400 levels, which may act as potential entry points for long trades, according to Amruta Shinde, technical and derivative analyst, Choice Broking. On the upper end, a sustained move above 24,800 could pave way for a rally towards 25,000, the analyst said.
Market Indices Close Lower
Both the frontline equity market indices closed 0.08% lower on Monday, with Nifty settling at 24,634.9 and Sensex ending at 80,364.94. The decline was led by selling in index heavyweights, with investors booking profits after the recent rally.
Investors Await RBI Policy Announcement
Investors are awaiting the RBI policy announcement this week, with the central bank widely expected to maintain status quo on rates. The RBI’s decision will have a significant impact on the market, as it will influence interest rates and liquidity.
Bank Nifty Displays Indecision
Bank Nifty displayed indecision, forming a Doji after a volatile session. A decisive break below the key support of 54,200 could trigger further downside toward 54,000 and 53,790, according to Amruta Shinde. However, if the support levels hold, it could provide fresh buying opportunities. On the upside, resistance lies at 54,800–55,000 zone, she added.
Short-Term Momentum Remains Weak
Currently, Bank Nifty is trading below its 21- and 50-day EMAs, signaling that short-term momentum remains weak and the trend favours the downside until these moving averages are convincingly breached, according to Bajaj Broking Research.
Investors should exercise caution and wait for the RBI policy announcement before making any major investment decisions. The market is likely to remain volatile in the short term, and investors should be prepared for any eventuality.
Trade Setup for September 30
Based on the current market trends and analysis, the trade setup for September 30 is as follows:
- Nifty support: 24,530-24,400
- Nifty resistance: 24,800-25,000
- Bank Nifty support: 54,200-54,000
- Bank Nifty resistance: 54,800-55,000
Investors should keep a close eye on the market and adjust their strategies accordingly. It is also essential to maintain a long-term perspective and not make any impulsive decisions based on short-term market fluctuations.
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