Thursday's market performance was characterized by a subdued range of movement in both benchmark indices.
Nifty experienced a marginal decline of 27 points, and Sensex followed suit, closing 65 points lower.
The media index emerged as a standout gainer, showcasing a notable rise of nearly 3%, while the IT index grappled with a decline exceeding 1.5%.
Today, Indian share markets are trading on a negative note with the Sensex trading down by 107 points at the time of writing, while the Nifty is trading down by 100 points.
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Here’s a rundown of today’s expected market movements…
Technically, Nifty commenced the day with subdued market activity, remaining within a tight range near the 20-day Simple Moving Average (SMA). The smaller candlestick structure and lack of strong intraday movement signify a struggle for dominance between the bulls and bears.
Analyzing the technical pattern, it's apparent that the market is undergoing a short-term correction.
For traders, an effective strategy for the day would involve capitalizing on intraday corrections by buying and leveraging rallies for selling.
Key support levels are identified at 19,700-19,600 (66,150-65,850), while pivotal resistance zones stand at 19,800-19,900 (66,400-66,700). The recommended buying range lies between 19,700 and 19,650, establishing a stop loss at 19,470.
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In the realm of Bank Nifty, 44,800 looms as a significant hurdle. On the flip side, robust support levels are identified at 44,300 and 44,200, presenting an opportune buying zone. Traders are advised to implement a tight stop loss at 43,800 to manage risk effectively.
The Nifty IT index has showcased a lower high at 33,000 levels, signaling a potential extension of the fall to 31,400 or 31,000. Market participants should brace for a period of weakness in the near term.
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As always, market conditions can shift unexpectedly, so staying informed and implementing proper risk management is essential while making trading decisions.
See you tomorrow!
Disclaimer: The information provided in this article is based on technical analysis and does not constitute financial advice. Traders should exercise their own judgement and consult with financial professionals before making any investment decisions.
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