Technical View:25,200 crucial for further upside in Nifty 50

The India VIX, the fear factor turned more supportive for bulls and it fell by 4.61 percent to 14.02 levels, the lowest level since April 4.

Nifty Trend

The Nifty 50, as expected, reached 25,200 levels in early trade but could not sustain for long as profit booking pulled down the index to finish flat amid rangebound trading on June 10. The index still sustained above the long falling resistance trendline and near the upper Bollinger bands with expansion mode, while the VIX declined further, which all are positive factors and support the market sentiment. Hence, if the index sustains above 25,200, the 25,300-25,500 are the levels to watch on the higher side, however, the 25,000 is expected to act as a support, according to experts.

The Nifty 50 opened higher and hit an intraday high of 25,199, but could not sustain those gains due to profit booking and fell up to 25,055 in the early trades. Immediately, the index showed recovery and remained rangebound for the remaining part of the session before closing at 25,104, up 1.05 points.

The index formed bearish candle with minor lower shadow on the daily charts. The RSI turned flat but still sustained above 60 at 61.82, while the MACD trended upward with further improvement in histogram.

According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, despite showing choppy movement in the short term, the near-term uptrend setup of Nifty remains positive and a sustainable move above 25,200 levels could open the next upside towards 25,600 levels in the near term.

Immediate support is placed at 25,000-24,900 levels, he said.

As per the weekly options data, in the near term, 25,200 is expected to be immediate hurdle for the index followed by 25,500, however, the support is placed at 25,000 levels. The maximum Call open interest was observed at the 26,000 strike, followed by the 25,500 and 25,200 strikes, with the maximum Call writing at the 25,200 strike and then the 26,000 and 25,150 strikes, while on the Put side, the 25,000 strike holds the maximum open interest, followed by the 24,500 and 24,800 strikes, with the maximum Put writing at the 25,100 strike, and then the 24,500 and 24,300 strikes.

Bank Nifty

The Bank Nifty snapped four-day winning streak and fell 210.5 points to 56,629 on profit taking, forming bearish candle with lower high-lower low formation, but sustained near the upper Bollinger band, which remains in expansion mode. The MACD maintained positive crossover with well above all key moving averages and with further positivity in histogram, while the RSI tilted downward a bit but still held above 60 at 66.03 levels.

“Bank Nifty remained rangebound post an initial 15-minute selloff, trapping aggressive shorts with an Open = High setup for two straight days. This negative price action is baiting bears, but all eyes are on 57,050 — a breach and sustain above it will trigger a short-covering rally towards 57,500,” said Anshul Jain, Head of Research at Lakshmishree Investments.

On the downside, according to him, fresh longs should only be considered if bullish evidence emerges around the 56,300–56,100 support zone.

Meanwhile, the India VIX, the fear indicator, turned more supportive for bulls and it fell by 4.61 percent to 14.02 levels, the lowest level since April 4.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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