Indian Market Strategy for 3rd Oct. | Nifty Down 106 Points; 19,490 Crucial Support Level

In the past week, the stock market experienced a sharp downward trend, causing concern among investors. However, there was a slight recovery on Friday as the market closed above the critical 19,600 mark, offering some relief for the bullish sentiment.

Nifty closed at 19,635 points, while the Sensex gained 290 points.

Notably, the healthcare sector emerged as a top gainer, surging by almost 2.80%. Conversely, the IT index faced profit booking at higher levels, and the consumer durables sector saw a slight dip of 0.50%.

Today, Indian share markets are trading lower with the Sensex trading down by 300 points at the time of writing, while the Nifty is trading lower by 106 points.

Asian Paints and HUL are the top gainers from the Sensex, while Tata Motors and Maruti Suzuki 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…

Nifty Technical Analysis:

Since the start of the month, the market has exhibited highly volatile trends. It consistently faced resistance at 19,725-19,750 / 66,200-66,400 levels while finding crucial support below the levels of 19,600/65,700.

Trading Strategy for Nifty:

Based on technical formations, a short-term upward pullback is anticipated in the near term. The market has formed a long-legged doji formation, hinting at potential trending activity on either side.

If the index falls below 19,490/65,400, it may descend to 19,400 or even 19,200 levels.

Conversely, breaching the 19,750/66,400 mark would propel the market towards 19,900-20,000 / 67,000-67,500 levels.

The true trend will manifest if the indices successfully breach the levels of 20,250/68,000.

It is recommended to strategize trades based on these given levels.

For a detailed market analysis, check out our recent webinar on Economic indicators influencing market moves hosted by Kaynat Chainwala, Senior Manager of Commodity Research. Click Here to watch the full video.

Bank Nifty Analysis:

Shifting focus to Bank Nifty, a crucial resistance level is noted at 44,750.

As long as it remains below this level, weak sentiment is anticipated to persist, possibly leading to a decline to 44,100-43,800/43,600. A potential uptrend might materialize only after breaching the 44,750 level, propelling the index towards 45,000-45,200.

In the Nifty IT index, a significant drop was witnessed, with it reaching 31,800 levels. The next substantial support is identified at 31,400, corresponding to the 50-day SMA.

To learn trading strategies you can apply in the current market, check out our expert-led courses by clicking HERE.

As always, market conditions can shift unexpectedly, so staying informed and implementing proper risk management is essential while making trading decisions.

See you tomorrow!

Kotak Securities

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.