Nifty Support at 24,270, Bank Nifty Bullish: Market Update

The NSE Nifty 50 is set for a lower opening on Thursday, extending the sell-off observed in Indian stock indices on Wednesday. The Sensex closed 0.24% lower at 77,966.35, with the Nifty 50 declining by 0.15% to 24,435.95.

Global Cues and Wednesday’s Close

Despite the domestic downturn, global markets, particularly US stocks, presented positive signals. This positive sentiment emerged after July inflation figures met expectations, effectively alleviating earlier concerns regarding rising prices.

Nifty 50: Key Support and Resistance

Analysts have identified crucial support and resistance levels for the Nifty Index. Sudeep Shah of SBI Securities pegs immediate support at the 24,300-24,270 zone.

Dhupesh Dhameja of SAMCO Securities identifies 24,385–24,350 as a critical support area. Immediate resistance for Nifty is seen between 24,570-24,600.

A decisive breakdown below support would signal a bearish trend. A sustained reclaim of 24,500 is necessary to stabilize the near-term trend. Potential extension of resistance could reach 24,750 and 24,900 if the immediate hurdle is overcome.

Bank Nifty Shows Bullish Momentum

The Bank Nifty index presented a bullish candle on its daily timeframe, indicating robust buying interest at lower price points. The index successfully reclaimed its 20-day EMA and established a higher base.

The crucial support area for Bank Nifty is around 57,500–57,700. A breakout above 58,250–58,300 would reinforce the bullish outlook.

This could potentially lead to targets of 58,700–58,750. Dhupesh Dhameja notes immediate resistance between 58,300-58,400, with further gains towards 58,800 and 59,200.

Immediate downside support for Bank Nifty is found at 57,500-57,400. Failure to clear the resistance hurdle might result in range-bound movement.