Nifty 50 Technical Analysis: RBI fee reduce boosts the market, FOMC choice subsequent

Fundamental Overview

The Nifty 50 bounced around a key support recently and
extended the gains today following the RBI’s
rate cut. The central bank’s support is certainly a good thing
for the stock market.

The aggressive US tariffs have been one of the main
negative factors for India this year. The tariffs haven’t stopped the main
upward trend but slowed down the momentum, nonetheless.

The US-India trade talks is something to always keep
an eye on as a positive resolution should give a stronger boost to Indian
equities.

Looking ahead, the main risk is the Fed releasing its
policy decision next week. There’s a risk of a hawkish cut that could weigh on
global risk sentiment and negatively impact the Indian stock market too.

If the Fed leans on the dovish side, then it
will keep the positive risk sentiment intact and support the stock market.

Nifty 50 Technical Analysis – Daily Timeframe

On the daily chart, we can see
that the Nifty
50 bounced around the trendline and extended the gains today following the
RBI’s rate cut. The buyers will likely continue to lean on the trendline to
keep pushing into new highs, while the sellers will look for a break lower to
target a correction into the 25,317 level next.

Nifty 50 Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more
clearly the bounce at the support zone around 25,900 level as the buyers
stepped in with a defined risk below the trendline to position for a rally into
a new all-time high. The sellers should wait for a break below the support to
gain more conviction and pile in for a drop into the 25,317 level next.

Nifty 50 Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the optimal
dip-buying opportunity was around the 25,900 support as flagged here.
We can expect the buyers to remain in control for now with a pullback into the
26,100 support providing another opportunity. As long as the price remains
above the trendline and the 25,900 support, the trend should be skewed to the
upside.

Upcoming Catalysts

On
Wednesday we have the FOMC rate decision.