During the past week, the benchmark indices underwent a significant sell-off, with Nifty closing 2.5% lower and the Sensex falling by 2.46%.
This decline impacted all major sector indices, notably the media index, which experienced a substantial drop of over 5%.
The pivotal event of the week was Nifty breaching the crucial support level of 19,300 (64,800), resulting in intensified selling pressure.
Nevertheless, the benchmark indices managed to stage a pullback rally following heavy selling on the preceding Friday.
Today, Indian share markets are trading on a positive note with the Sensex trading up by 152 points at the time of writing, while the Nifty is trading up by 42 points.
UltraTech Cement and Reliance Industries are the top gainers, while Maruti Suzuki India and Axis Bank are the top losers.
Check out this short video for detailed market update: Market Ready by Kotak Securities
Here’s a rundown of today’s expected market movements…
From a technical perspective, the medium-term market structure still exhibits signs of weakness, likely to endure even when facing resistance, which would invite selling pressure.
Expectations point to the continuation of a sideways trend as long as the index maintains trading above 18,800 (63,300).
Above this threshold, the market may ascend to 19,075 or 19,100 levels. Conversely, a breach below 18,800 (63,300) could intensify selling pressure, potentially pushing the market down to 18,700-18,650 (62,900-62,800), where the market finds support from the 200-day Simple Moving Average.
A market breakthrough and sustenance above the 19,100 level would set the stage for a move to 19,250 or 19,400 levels, corresponding to the 100-day SMA. Thus, the suggested strategy hinges on buying if Nifty maintains levels above 19,100 or selling if it dips below 18,800.
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The Bank Nifty's crucial support zone rests between 42,400 and 42,300. Above this range, it could advance toward the 200-day SMA at 43,200 and 43,350.
Conversely, an uptrend below 42,300 could weaken, possibly leading to a descent to 42,000 or 41,800 levels.
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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.
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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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