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Nifty Prediction for Monday, 07 October 2024
Nifty has fallen nearly 5% from its peak to 25,000 amid rising Middle East tensions, prompting panic selling. A Hammer Candlestick pattern on the support level suggests a potential reversal. Despite bearish sentiment and heavy selling by FIIs, a recovery is anticipated on 7 October 2024, targeting 25,200, influenced by positive global market conditions.
Nifty is down by nearly 1300 points or almost 5% from its all-time high of 26,277 and as the Middle East tension grew – it created chaos among investors and panic selling on the Dalal Streel which took Nifty down to the 25,000 level, where Nifty took the support and closes the week in all day Red.
As of Now, Nifty is on a 5-day losing streak, and support at 25,000 most likely break the losing streak of Nifty on Monday as the support on the 25,000 mark looks strong and a positive Global Market reaction would also help boost the moral of Bulls in the market.
Also, the SEBI’s new circulars about the Derivatives segment put market participants in dilemma whereas the NSE and BSE business will also be directly affected by the new rules about the Derivatives segment aiming to protect small and retail traders – executing from November 20, 2024.
Looking at the Nifty 50 Stocks,
Top Gainers: Infosys, ONGC, HDFC Life, Tata Motors, Wipro
Top Losers: Mahindra & Mahindra, Bajaj Finance, Asian paints, Nestle, BPCL
Also Read: Top 10 Mutual Fund Companies in 2024
Nifty 50 Prediction for 07 October 2024
On the Hourly chart of Nifty 50 – A Hammer Candlestick is formed at the support level of 25,000 which is by the way a Bullish reversal pattern – so most probably, Nifty will take a rest at the support level and break the 5-day losing streak.
Also, the RSI is trading in the oversold zone indicating a possible Reversal in the market on Monday, whereas the Nifty PCR also fell below 0.5 which is also a positive signal for the Market and we may see some sort of Bullish movement in the Dalal Street on Monday with a possible target to 25,200 mark.
Technical Indicators Indicating a Reversal in the Market
Currently, the Nifty PCR stands at 0.44 which indicates an Oversold Market – which means we may see some reversal in the market soon.
A Hammer Candlestick formation on the hourly chart at the support level indicates a Potential pullback from the lower levels.
Also, the RSI is trading around 25 on the hourly chart, which is again an Oversold Signal and the market is ready for a reversal.
More over the Nifty is trying to take support at 50DEMA and if Nifty claims its spot above 25,050 then we can see a reversal towards the 25,200 on Monday.
FIIs is more Bearish on the Indian Market
As of now, FIIs have sold more than Rs.40,000 Crores worth of Shares in the Cash Segment in the last 4 days which is huge, and along with aggressive selling in the cash segment, they have also unwound their long positions in the Futures segment too – indicates that the Bearish Market may stay for some more time.
Anyway for Monday – as of our Analysis, We are expecting a reversal with a potential upside of 200 points in Nifty 50 which is around the 25,200 level – which is also the current nearby resistance.
What to Expect from Nifty on 07 October 2024
The nifty view is totally Negative – but still, a recovery is expected on Monday led by positive global cues, and multiple Bullish Reversal Signs as seen on the Technical Chart of the Nifty50.
So for Monday – 7th October 2024, Nifty is likely to open positive and would trade in Green with a potential target of 25,200 as this is the current resistance for Nifty with 32Lakh Call OI compared to 18.8Lakh Put OI.
Nifty nearby support is at the 25,000 level followed by 24,800, and 24,600 levels – and on the higher side, current resistance is at the 25,200 level followed by 25,300, and 25,500 levels.
“Here are the trading levels for Nifty – 24,800 – 25,200“
Nifty 50 Support and Resistance for 07 October 2024
| Nifty Support Levels | Nifty Resistance Levels |
|---|---|
| 25,000 | 25,200 |
| 24,800 | 25,300 |
| 24,600 | 25,500 |
Note:- For the Most Accurate Data you can revisit this Page after 11:00 AM (during Trading hours), so we can update the Trade Setup after analyzing the Market.
Happy Trading 🙂
