Daily Market Report: Nifty 50 and Bank Nifty Performance Analysis

Nifty 50 Overview:

The Nifty 50 index has recently broken out of its consolidation phase, signaling a rise in market optimism. The index continues to sustain above the 21-day Exponential Moving Average (EMA), which is a positive sign for near-term momentum. The Relative Strength Index (RSI) on the daily chart shows a bullish crossover, further reinforcing positive sentiment.

Key Technical Indicators:

• Closing Price (September 11, 2024): 24,918.45 (-0.49%)
• 21-Day EMA: Nifty has been trading above this level, indicating bullish momentum.
• RSI: 53 (Daily), 68 (Monthly), signaling healthy momentum.
• Trend: Nifty closed above its recent consolidation high, indicating strength in the current trend.

Support and Resistance Levels:

• Resistance: 25,100 – 25,145
• Support: 24,735 – 24,880, with deeper support at 24,630
• Upside Potential: The rally is expected to continue toward the 25,470–25,500 range.

Market Sentiment and Global Cues: Tracking global market trends, Indian benchmark indices like Sensex and Nifty are expected to open higher on Thursday. Gift Nifty indicates a positive start, trading around the 25,085 level, offering a premium of nearly 140 points from the previous close of Nifty futures.

Nifty 50 - Bearish Candlestick Pattern:

Despite the positive sentiment, the Nifty 50 formed a bearish engulfing candlestick pattern, which could indicate a potential downturn. Wednesday’s session saw a decline of 122.65 points, with the index closing at 24,918.45. The index found stiff resistance at the 25,100 level, witnessing selling pressure in the second half of the trading session.

Short-Term View: The trend remains range-bound to weak in the short term, with pullbacks towards 25,050 – 25,100 levels offering opportunities for traders to exit long positions. Further selling pressure is anticipated if the index dips below key support levels.

• Support Levels: 24,880 – 24,750
• Resistance Levels: 25,020 – 25,145

Bank Nifty Overview:

Bank Nifty continues to face selling pressure after failing to breach its 50-day moving average. The index ended Wednesday’s session 262.30 points lower at 51,010.00, or 0.51% down for the day.

Key Technical Indicators:

• Closing Price (September 11, 2024): 51,010.00 (-0.51%)
• 50-Day Moving Average: Acts as a strong resistance for the Bank Nifty index.

Support and Resistance Levels:

• Resistance: 51,400 – 51,500
• Support: 50,850 – 50,640

A close above the 51,500 level could trigger a short covering move, with an upward target of 52,000 – 52,400. On the downside, dips toward 50,850 – 50,640 can be used to initiate fresh long positions.

Open Interest (OI) Data:

• Call OI (Resistance): Highest OI observed at 25,100 and 25,200 strike prices.
• Put OI (Support): Highest OI observed at the 24,700 strike price.

Conclusion:

While Nifty 50 has broken out of its consolidation phase and maintained a bullish sentiment, caution is advised due to the bearish candlestick pattern that formed in Wednesday’s session. A pullback towards key support levels could provide entry points for fresh long positions, while resistance at 25,100 remains significant.

Similarly, Bank Nifty’s performance indicates resistance at 51,500, with short-term dips offering fresh opportunities for long positions. Both indices are influenced by global market trends and Gift Nifty's performance, suggesting a positive start to Thursday’s session.