Trade Setup for October 15: Nifty Support at 25,050 as Consolidation Likely Ahead of Diwali
The NSE Nifty 50 has found support at around 25,050 and 25,000, with analysts expecting consolidation to continue ahead of the festive season, according to analysts. The daily chart indicates that Nifty has formed a black candle, with the Nifty continuing to hold above its short-term moving average and remains positioned above the key golden retracement level.
According to Rajesh Bhosale, equity technical analyst at Angel One, technical analysis of the daily chart indicates that Nifty has formed a black candle, with the Nifty continuing to hold above its short-term moving average and remains positioned above the key golden retracement level. Nifty levels to watch out for include the support at 25,050 and 25,000, while the 25,300–25,350 band remains a stiff resistance zone.
Consolidation Ahead of Diwali
A sustained move below this zone could trigger further weakness. On the flip side, a decisive breakout above this would likely resume the upward momentum, said Bhosale. Diwali trading is expected to be volatile, with investors looking to book profits before the festive season.
Shrikant Chouhan, head of equity research at Kotak Securities, said, “We believe that, although the intraday market texture is weak, a fresh sell-off is possible only if the level of 25,050/81,800 is breached.” The Bank Nifty is also signaling towards consolidation, with the index forming a high wave candle with a small body and shadows in either direction, indicating consolidation.
Bank Nifty Signals Consolidation
According to Bajaj Broking, while resistance will be at 57,000, support is placed at 55,600 and 57,000. Ponmudi R, chief executive officer of Enrich Money, said, “As long as the index holds above 56,000, sentiment remains positive; a move above 56,700–56,900 could trigger a short-covering rally toward 57,300, while a break below 56,000 may drag it down to 55,500.”
The Nifty ended in the red for the second consecutive session on Tuesday, after a volatile and choppy trade. At the close, the Sensex slipped 297.07 points, or 0.36%, to 82,029.98, while the Nifty fell 81.85 points, or 0.36%, to 25,145.50.
Market Outlook
The rupee vs dollar exchange rate also depreciated 9 paise to 88.77 against the US dollar in early trade on Tuesday, weighed down by the broad strength of the American currency in the overseas market. Investors are advised to stay cautious and keep a close eye on stock market news and Nifty levels to make informed investment decisions.
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