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Daily Technical View on Nifty

* From the budget day’s low of 24074, Nifty registered a recovery of 787 points. Nifty has surpassed the crucial resistance of 24600 and now that resistance is expected to interchange its role as a support going forward. Nifty has reached in to uncharted territory and now the level of 25000 can act as a psychological resistance. Far Resistance is seen at 25623, which happens to be 38.2% of the swings seen from election result day's low of 21281 to 24854, top made on 19th July and from 24854 to swing low of 24074.

* Bank Nifty found support near 38.2% fibonacci retracement of the entire upswing seen from 4 th June 2024 low of 46077 to 4 th July 2024 high of 53357. Index has also formed bullish “Engulfing” candlestick pattern on the daily chart, which indicates probable bullish trend reversal. Next resistances for Bank Nifty are seen at 51944 and 52800. Traders can initiate fresh longs in BankNifty with the stoploss of 50438 and with a target of 52800.

* Nifty Small cap 100 and Microcap 250 indices reversed north from the crucial trend line support on their weekly charts, which indicates continuation of and primary uptrend. Microcap 250 Index has registered fresh all time high and likely to perform well.

* Considering the technical evidence discussed above, we advise traders to go long in Nifty for the targets of 25000 and 25623 with 24600 stoploss on closing basis.

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