Trade Setup For Oct 29: Nifty 50 Faces Resistance At 24,525–24,600 Levels

The Nifty 50 index recently showed some positive momentum, ending the day 158.35 points or 0.65% higher at 24,339.15. Similarly, the Sensex also saw gains, rising by 602.75 points or 0.76% to close at 80,005.04.

As the Indian equities market seems to regain its cheer, especially with the festive season of Deepavali approaching, analysts have updated their assessments regarding the support and resistance levels of the benchmark indices.

Immediate Support and Resistance Levels

According to Shrikant Chouhan, head of equity research at Kotak Securities Ltd, the Nifty 50 might experience potential resistance at levels between 24,525 and 24,600. For traders, the range of 24,200 to 24,100 acts as an essential support zone. Should the index fall below this threshold, overall market sentiment may shift towards a more bearish outlook, prompting traders to exit long positions.

Moreover, the Nifty 50 has formed a "spinning-top candlestick pattern," indicating uncertainty in market direction. Aditya Gaggar, director of Progressive Shares Brokers Pvt, noted that a decisive move above 24,600 could signal a breakout from two existing patterns, including a change in polarity and a falling wedge formation. On the downside, the area between 24,100 and 24,180 remains a robust support level.

Bank Nifty Insights

For Bank Nifty, an immediate support level is identified at 50,382. If this index can maintain levels above 51,590, it may potentially move towards the 52,000 to 52,500 range, as indicated by Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C Mehta Investment Intermediates Ltd.

Market Recap

The Nifty 50 and BSE Sensex broke a five-session losing streak, helped by recovery in banking sector stocks, marking their best day in a month. On this positive note, all 12 sectors on the NSE showed upward momentum, with Nifty PSU Bank performing particularly well.

This upswing in Indian markets was further supported by gains in Asian markets, driven by a decline in oil prices along with a significant drop in the Japanese Yen, marking its lowest point since July 31.

Currency and Economic Overview

In the currency market, the Indian rupee settled at Rs 84.07 per US dollar, slightly fluctuating from its previous close of Rs 84.081. Investors are currently cautious due to ongoing tensions in the Middle East and upcoming US elections. Some market analysts expect the Reserve Bank of India to maintain the rupee within the range of Rs 84.00–84.20 to prevent any drastic depreciation.

Nifty, Resistance, Support