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Nifty :23616

Technical Outlook

Day that was…

Equity benchmark took breather after two days of decline. Nifty gained 92 points to settle the session at 23708. Broader market turned positive with A/D ratio of 2.8:1 where nifty small cap 100 gained 1.35%. Sectorally, barring IT all indices ended in green where Oil and Gas, Health care and Realty were in the limeligh

Technical Outlook:

• Index witnessed lack luster action where in it traded in 150 points throughout the day. As a result, daily price action formed an Inside Bar after a big bear candle indicating pause in the follow through selling indicates prolong consolidation with the index trading below 1-month average volumes, despite this it closed in the vicinity of 200 days EMA coincided with 80% retracement of the previous up move (23263- 24857).

• Nifty is getting stiff resistance near 23900 mark. Going ahead, we expect prolongation of consolidation in the broader range of 23900-23300 range wherein stock specific action would prevail ahead of result season. Only a decisive close on either side of range would dictate further course of action.

• Meanwhile, we expect volatility to remain elevated onset of Q3FY25 earning season, new policy measures from Trump government and Union Budget expectation wherein strong support is placed at 23300 it is confluence of 61.80% retracement of Jun-Sept rally (21281-26277) coincided with 52 weeks EMA placed at 23388. In the process, 23900 would continue to act as immediate hurdle.

• The broader market staged rebound after approaching extreme oversold territory of market breadth (as 452 stocks of Nifty 500 universe closed with a negative close). Going ahead, follow through strength along with a close above previous sessions high would keep pullback options open while sustaining above 100 days EMA. Hence, focus should

Nifty Bank : 50202

Technical Outlook

Day that was :

Bank Nifty took a breather after sharp decline witnessed in the previous session and settled the day on a positive note at 50202 , up by 0 .56 % . Meanwhile, Nifty PSU Bank index closely mirrored the benchmark and ended the day with a gain of 0 .50 %

Technical Outlook :

• The Bank Nifty opened the day on a positive note and traded with a bullish bias during the majority of the day, amid intraday volatility . The index has formed inside bar pattern on the daily timeframe, indicating breather to the ongoing trend .

• Going ahead, we expect the index to consolidate within the broader range of 51600 -49700 , with elevated volatility ahead of earning season . A breakout on the either side would dictate the further course of action . On the other hand, for a meaningful pullback to materialize the index requires to form higher high -low pattern . The immediate hurdle stands at 51600 , which needs to be surpassed for sustained upward momentum .

• The key point to highlight is that, the Bank Nifty is trading near the vicinity of its 52 -week EMA coinciding with key support threshold of 49700 . Historically, this zone has triggered bounce on multiple occasions, acting as a major support zone .

• Mirroring the benchmark index, the PSU Bank index formed an inside bar pattern showing lack of follow - through selling from the previous trading session, thus indicating breather to the ongoing trend . Going ahead, the next level of support is placed at 6000 mark which is 50 % retracement of previous up -move(3962 -8053), while a higher high -low pattern would be required for a meaningful pullback to materialize .

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