Analysts say sustaining above 24,800 and a decisive breakout above 25,150 could propel Nifty towards 25,500.
Indian equity markets continued their positive momentum on September 9, rising for the fifth consecutive session and the Nifty index reclaiming the 50-day Exponential Moving Average (EMA) near 24,800.
Additionally, Foreign Institutional Investors (FIIs) turned buyers, with over ₹2,000 crore in cash inflows.
Will Nifty rally past the 25,000 mark on Wednesday? SEBI-registered analysts shared the trade setup for September 10 on Stocktwits.
Wednesday Trade Setup
Analyst Mayank Singh Chandel noted that the Nifty index formed a Doji-like candlestick on the daily chart on Tuesday, signaling indecision between bulls and bears at higher levels. However, the index is trading above all key moving averages, indicating a strengthening trend.
He believes that a breakout above the 25,000–25,150 zone is crucial to trigger fresh buying and negate the lower high–lower low structure. The Relative Strength Index (RSI) stands at 53.55 with a bullish crossover, showing improving momentum.
Levels To Watch
• Immediate Support: 24,750
• Crucial Support Zone: 24,620 – 24,520
• Immediate Resistance: 24,900
• Key Breakout Zone: 25,000-25150
• Next Upside Target (if breakout holds): 25,500
Chandel concluded that Nifty is building a base for a potential upside breakout. The index needs to sustain above 24,800 to maintain bullish momentum, while a decisive close above 25,150 could unlock a rally towards 25,500. However, failure to cross this zone could lead to consolidation between 24,700 and 24,950 in the near term, he added.
Arun Mantri highlighted that the Nifty index had retraced above significant resistance levels and now faced the acid test at 25,000. If the index moves above 25,000, a steep short-covering rally is likely. Mantri added that the short-term support has shifted around 24,700.
Varunkumar Patel said that after a long gap, FIIs turned buyers in the cash market. In F&O, they cut some net index shorts but built fresh index call shorts, showing caution. Globally, a risk-on mood persists with strong momentum across emerging markets, driven by global strength. Optimism surrounding potential GST rate cuts could provide a significant boost to consumption-driven sectors.
Derivatives data shows that the Put-Call Ratio (PCR) has risen over 1, indicating the market has slipped into an overbought zone. Patel advised traders to watch for volatility in the near term. He added that one must avoid overtrading and stick to quality names with tight stop-loss discipline.
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