The benchmark indices witnessed a considerable pullback yesterday, with Nifty concluding 155 points lower and Sensex experiencing a decline of 525 points following an abrupt intraday correction.
This pullback was accompanied by significant selling pressure across various major sectoral indices, particularly affecting the media and realty sectors, both of which recorded drops of over 1% each.
Today, Indian share markets are trading on a negative note with the Sensex trading down by 241 points at the time of writing, while the Nifty is trading down by 244 points.
Check out this short video for detailed market update: Market Ready by Kotak Securities
Here’s a rundown of today’s expected market movements…
The Nifty and Sensex grappled with weak market sentiments, culminating in the breach of a crucial support level at 19,200 (64,400) and the formation of a bearish candle on the daily chart.
This bearish signal suggests a negative market outlook.
As a result of consecutive days of back-to-back selling, the market is inching closer to the oversold territory.
In light of this, investors and short-term traders should explore potential buying opportunities in selected stocks within the range of 19,000 and 18,900.
Resistance on the higher side is expected at 19,180/19,200.
For a detailed outlook on markets, check out the recent webinar hosted by our research team here: Stocks & Strategy - October 2023
Bank Nifty is gravitating towards the 42,500 level, which marks a substantial support zone for this index.
Adoption of a contrarian strategy is advised, focusing on the purchase of specific bank stocks within the range of 42,500 and 42,300 levels.
This perspective is geared toward a medium-term horizon.
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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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