According to Teji Mandi Investment Technologies VP Jatin Gedia, Nifty has been consolidating between 24,400 and 24,000 for the past eight trading sessions and has formed a higher low at 24,110. The index has also surpassed the previous swing high of 24,313, suggesting a resumption of the uptrend. Gedia expects Nifty to rally towards 24,492, which represents the 61.8% Fibonacci retracement level of the fall from 24,774 to 24,026, with potential to stretch higher towards 24,774, the August high. As per ET Now, Jay Thakkar, Head of Derivatives and Quant Research projects Nifty to remain in a broad range of 24,000-24,500 for the September series, with the critical support at 24,000 and resistance at 24,500. Thakkar noted that whichever side breaks will lead to another 500 points move, with India VIX trading at lower levels indicating potential for short-term bounce.
As reported by Teji Mandi Investment Technologies, Bank Nifty clearly outperformed Nifty today and closed with gains, with the index consolidating between 57,000 and 58,000 for the past four weeks. Divergence among key heavyweights is causing this consolidation, and a decisive break above 58,000 - 58,200 would suggest a resumption of the uptrend. The ideal trading strategy involves taking a contrarian view at one of the extremes and booking profit at the other extreme, with dips towards the support zone 57,600 - 57,500 used as buying opportunities. Immediate resistance is at 58,200, followed by 58,600.
According to the technical analysis, Vedanta (VEDL) is recommended as a buy at ₹287 with a stop-loss at ₹274 and target of ₹305. The stock found buying interest from the 61.8% Fibonacci retracement level at ₹264 and has broken out of a two-day consolidation with above-average volume, accompanied by a 5% addition in open interest and positive momentum indicator crossover. Nykaa (FSN E-Commerce) is recommended at ₹339 with a stop-loss at ₹331 and target of ₹357, having found support at the 40-day exponential moving average at ₹323** and resumed uptrend after breaking the 328-335 range. Navin Fluorine is recommended at ₹8,560 with a stop-loss at ₹8,300 and target of ₹9,000, having broken out of a symmetrical triangle pattern with rising ADX confirming the uptrend.
Based on the latest market outlook, ET Now analyst Jay Thakkar recommends buying Nifty futures in the range of ₹24,000-24,500 with a stop loss at ₹24,000 and targets of 24,500 and 24,800. For Bank Nifty, he suggests buying Kotak Bank futures in the range of ₹420-426 with a stop loss below ₹406 and targets of ₹442-450. Thakkar noted that Kotak Bank closed well in positive territory and long additions in the futures segment indicate a positive trend, with the stock providing a breakout after long consolidation. He also recommends buying OFSS futures in the range of ₹12,100-12,200 with a stop loss below ₹11,900 and targets of ₹12,800 and ₹13,000, citing the stock's clean breakout above multiple swing resistance levels and continued outperformance in the Nifty IT sector.
