Nifty falls sharply, negative outlook persists

Nifty Technical Outlook: Based on market closing on Monday, September 30, 2024

In the last trading session, the Nifty closed at 25810.85, down -368.10 points or -1.41 percent. The downward bias will continue if the index moves below the intraday support level of 25800.

In the previous session, Nifty opened negatively at 26061.31 and this trend continued throughout the session and hit the intraday low of 25794.10 before closing at 25810.85.

The gainers were the metal, and media sector, while the biggest losers were auto, financial services, banks, and realty.

The market breadth was negative with 1062 stocks rising,1550 falling, and 139 remaining unchanged.

The biggest gainers under the nifty were JSW Steel, NTPC Ltd., Hindalco Industries Ltd., and Tata Steel Ltd., whereas the top losers were Hero MotoCorp Ltd., Trent Ltd., Reliance Industries Ltd., and Axis Bank Ltd.

Technically, momentum indicators signal a positive trend, and the Nifty remains above the medium-term and long-term moving averages.

However, the index formed a long black candle on the daily chart and closed below the previous day's close. 

This pattern indicates a negative bias for the index. On the lower side, the index has intraday support at 25800 level. 

If the index moves below this level, the negative trend can be expected today. The nearest intraday resistance is at 25875 levels. For a pullback rally, the index needs to surpass this level.

Key levels to watch

Intraday support: 25800, 25725, 25650

Intraday resistance: 25875, 25950-26035

Positional support: 25350 -24750

Positional resistance: 25850- 26400

Bank Nifty

In the previous trading session, Bank Nifty closed at 52978.10, registering a loss of 856.20 points.

Technically, momentum indicators suggest a positive trend, but the index closed below its short-term moving averages.

Moreover, the index formed a long black candle on the daily chart and closed near the day's low.

This pattern indicates the negative bias for the index. On the lower side, the index has intraday support at the 52900 level, while the resistance is at 53200.

If the index moves below the intraday support level of 52900, a further downside move can be expected today. Otherwise, a pullback rally can be expected from the support area.

As indicated by the 15-minute charts, intraday traders' support levels are at 52900, 52700, and 52500, while resistance levels are at 53200, 53400, and 53725.

Positional traders should watch short-term support at 52100–51000, with resistance at 53400–54500.