The benchmark Nifty index is poised to hit 26,000 for the first time on Tuesday, September 24. As the milestone approaches, market participants are gearing up for a celebration, marking this significant achievement with symbolic gestures like confetti, cake, and possibly even champagne.
Market Sentiment: The prevailing market sentiment is bullish, with strong liquidity acting as a positive catalyst. Traders are advised to “make hay while the sun shines” as Nifty edges towards this historic level. The broader market trends remain favourable, supported by foreign institutional investments (FII) and domestic institutional investments (DII) flowing positively.
Global Market Update (as of 7:00 AM):
- GIFT Nifty: (+40, 25,999)
- Dow Futures: (-78, 42,045)
- Nasdaq 100 Futures: (+8, 19,860)
- Nikkei: (+647, 38,375)
- Hang Seng: (+326, 18,574)
- Dow Jones: (+61, 42,125)
- Nasdaq: (+26, 17,974)
- Bovespa: (-497, 130,568)
Technical Overview:
- Nifty (Current Market Price: 25,939):
- Support: 25,800 / 25,709
- Resistance: 26,100 / 26,500
- Range: 25,900 – 26,100
- Bias: Positive
- 21-Day Moving Average (DMA): 25,247
- 50-DMA: 24,838
- 200-DMA: 22,943
- Bank Nifty (CMP 54,105):
- Support: 53,650 / 53,100
- Resistance: 54,500 / 55,300
- Range: 53,700 – 54,500
- Bias: Positive
- 21-DMA: 51,800
- 50-DMA: 51,395
- 200-DMA: 48,907
Wall Street Recap: Wall Street started the week on a bullish note, with the S&P 500 and Dow Jones hitting new record highs. Crude oil remained firm at $70.88 per barrel, while COMEX Gold traded steady at $2,629 per ounce.
Key Points to Note:
- In Monday’s session, Nifty touched a new all-time high at 25,956.25.
- Liquidity continues to drive the market higher, with retail participation through Mutual Fund SIPs surging. In August 2024, SIP inflows reached ₹23,547 crore, with 9.61 crore accounts.
Outlook and Strategy: All eyes are on Nifty’s upcoming 26,000 milestone. While this number is significant, experts believe it is merely a milestone on the journey rather than a final destination. The broader trading range for Nifty is expected to remain between 25,000 and 26,500, with 26,500 being a key resistance level.
Traders should also monitor global economic data. The next big event on the horizon is the U.S. PCE inflation data, set to be released on Friday, September 27. Prior to that, U.S. GDP growth numbers for Q2 2024 and Federal Reserve Chair Jerome Powell’s speech on Thursday, September 26, will shape market sentiment.
Options Data Insights: Nifty is likely to trade within the 25,000-26,500 range. Maximum Call Open Interest (OI) is at 27,000, followed by 26,000, indicating significant resistance. On the downside, the maximum Put OI is at 25,000, providing support around this level. Meaningful Put writing has been observed at 25,900 and 25,800, suggesting strong buying interest near current levels.
Bottom Line: With the Federal Reserve’s rate cut providing a bullish backdrop, Nifty appears ready to break through the 26,000 mark, with investors continuing to celebrate the index’s upward momentum.
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Source: LF
News Desk
