Experts suggest a cautious stance as Nifty hovers near critical support and resistance zones.
Indian equity markets ended higher on Friday, with the GIFT Nifty indicating a positive start to the week.
SEBI-registered analysts shared the trade setup for Monday on Stocktwits, and they believe that the 24,600–24,800 range is the critical threshold that will dictate the near-term direction.
Trade Setup For September 8
Bharat Sharma of Stockace Financial Services noted that the Nifty index found support at the 100-day Exponential Moving Average (EMA) of 24,630 on Friday, while 24,800 remains the crucial resistance positionally.
Sharma said that if the Nifty index breaches 24,800, it could head to 25,000. However, a fall below 24,600 could push the market back into the negative zone, with a downside target until the 200-day EMA at 24,250. He suggests a wait-and-see approach till we see a decisive move on either side.
For Monday’s trade, he identified immediate support at 24,720-24,700-24,680, which aligns with the range of synchronization of all EMAs in a 15-minute timeframe. And hence the index is expected to protect this range. If the market breaches this, then one can expect 24,640-24,600-24,550-24,500 respectively.
Sharma reiterated that below 24600, there will be a high probability of deep negativity in the market that can lead the market towards lower supports & intensive damage. Immediate resistance is seen at 24,760 and higher, followed by 24,800. If sustained above this level, then probable upside to 24,840-24,880-24,920 and higher is likely.
Trading Strategy
Ashish Kyal noted that the Nifty index has continued to move between Bollinger bands with Gann magnet at 24,728. He identified 24,620-24,840 as key levels for scalping in that direction, and added that opening hour trade was crucial as the lunar cycle would set the tone for the expiry on Tuesday.
Market Outlook
Sunil Kotak highlighted that Foreign Institutional Investors (FIIs) remained in a sell mode. FIIs have sold ₹1,304 crore in cash on Friday. For the index, he said that the outlook remains sideways till the index crosses above 24,550-24,600. And it turns bullish if the Nifty breaches 24,850-24,900.
Kotak flagged autos as the sector to watch, with focus on Hero Moto
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