Market Overview
Nifty has made headlines by closing at a remarkable new high on September 23, nearing the significant psychological threshold of 26,000 points. This positive momentum heralds the start of the F&O expiry week, with market analysts predicting that Nifty could potentially surpass the 26,000 mark in the upcoming trading sessions. However, experts emphasize that sustaining levels above 26,000 is crucial for maintaining this upward trajectory.
Current Market Performance
On Monday, the Nifty index surged by 148 points, concluding at 25,939 points. Meanwhile, the Bank Nifty set a new record closing at 54,106, enjoying a gain of 313 points. This bullish trend reflects a healthy market environment, with 1,562 stocks advancing compared to 939 stocks that declined on the NSE.
Nifty’s Immediate Support and Resistance Levels
Currently, the immediate support for Nifty stands at 25,700, with the next significant support level positioned at 25,500. For Bank Nifty, expectations are set for a rise towards 54,500, supported by the 53,800 and 53,500 levels.
Expert Insights on Nifty Outlook
According to Jai Thakkar from ICICI Securities, the Nifty may encounter resistance around the 26,000 level from a monthly closing perspective. Should it surpass this level, Nifty might experience further gains, targeting the range of 26,200 to 26,400. Thakkar also highlights that closing above 26,000 is imperative for the continuation of an uptrend. The MACD (Moving Average Convergence Divergence) indicators are in strong buy mode across hourly, daily, and weekly charts, presenting a bullish outlook.
Derivatives Data Analysis
Looking into the derivatives data, the 26,000 strike has the highest open interest on the call side, while significant gains have been observed in the 25,900 and 25,800 put strikes. The current PCR (Put Call Ratio) stands at 1.42, indicating bullish sentiment, although proximity to overbought territory (above 1.60) raises caution. Thus, while the short to medium-term outlook remains positive, profit booking and consolidation may occur until a decisive breach of the 26,000 level is achieved.
Support and Resistance Levels for Nifty
| Support Levels | Resistance Levels |
|---|---|
| 25,800 – 25,600 | 26,000 – 26,200 |
Strategic Outlook for Nifty
Investors are advised to consider a strategy of buying on dips around the 25,800 level, with a stop-loss set at 25,600. Targets can be aimed towards the 26,000 to 26,200 range.
Bank Nifty Analysis
In the context of Bank Nifty, Jai Thakkar indicates that it has closed with gains for eight consecutive trading days, surpassing the significant 54,000 level, which serves as a positive indication. The MACD remains in buy mode across multiple time frames, suggesting a strong continuation of the bullish trend.
Bank Nifty’s Support and Resistance Levels
Derivatives data reveals a PCR of 1.39, reflecting short-term bullishness. Increased put writing has been noted across strikes from 54,000 to 53,500, coupled with notable call unwinding leading up to the monthly expiry. Overall indicators suggest a bullish trend, but caution is warranted as the PCR approaches overbought levels (beyond 1.60), especially with the upcoming expiry.
| Support Levels | Resistance Levels |
|---|---|
| 53,800 – 53,500 | 54,300 – 54,500 |
Strategic Outlook for Bank Nifty
For Bank Nifty, a recommended strategy is to buy on dips around the 53,800 level, maintaining a stop-loss at 53,500, with expected targets set at 54,300 to 54,500.
Conclusion
As the market navigates through this phase of growth, investors should remain vigilant and consider the technical indicators and market sentiments. By staying informed and adopting strategic approaches, traders can navigate this optimistic yet cautious landscape effectively.
