Nifty Set to Surge Further: Key Support at 25,200; Trade Setup for October 16
The NSE Nifty 50 is expected to continue its upward movement, having 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 a lack of follow-through to the previous session’s bearish engulfing candle, highlighting the continuation of the positive momentum.
Technical Analysis of Nifty
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, as per technical analysis by 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 day trading strategies, 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. The 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 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. To learn more about Bank Nifty analysis, click here.
Market Performance
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. For the latest Nifty news and updates, visit our website.
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.
Overall, the market is poised for further upside, with key support at 25,200. Investors and traders can look to investing strategies such as buying on dips and selling on rallies to navigate the market. For more information on stock market analysis, visit our website.
