Momentum indicators hint at a negative trend in market

Nifty Technical outlook based on market closing on October 10:

In the latest trading session, the Nifty closed at 24,998.45, up by 16.50 points or 0.07%. The positive bias is expected to persist if the index trades and sustains above its immediate support level of 24,950.

The Nifty opened positively at 25,067.10, reaching an intraday high of 25,134.10 during the morning session. However, the index gradually declined, hitting a low of 24,979.40 before closing at 24,998.10. Banking, financial services, metals, and auto sectors ended in positive territory, while pharma, IT, media, and FMCG sectors saw losses.

The market breadth was positive, with 1,459 stocks advancing, 1,188 declining, and 95 remaining unchanged. Among the top gainers were Kotak Bank, HDFC Bank, BEL, and Maruti, while Cipla, Tech Mahindra, Trent, and Sun Pharma were the major losers.

From a technical perspective, momentum indicators continue to signal a negative trend, with the Nifty trading below its short-term moving averages. Despite the formation of a black candle on the daily chart, the index managed to close just above the previous day’s level, suggesting a potential consolidation phase. On the downside, immediate support is at 24,950, and a break below this level could extend the recent downtrend. For a bullish reversal, the index must move above the resistance at 25,050.

Intraday levels

Support: 24,950, 24,855, 24,765
Resistance: 25,050, 25,140, 25,235 (15-minute charts)

Positional trading levels

Short-term support: 24,750 - 24,450
Resistance: 25,500 - 26,275