Indian Market Strategy for 5th Oct. | Nifty Up 100 Points; 19,330 Crucial Support Level

Yesterday, the Indian stock market commenced on a bearish note, opening with a significant gap in the indices.

However, a remarkable intraday recovery from these lower levels was witnessed later in the day.

Despite this, Nifty concluded the day 92 points lower, and the Sensex also experienced a downturn of 286 points. The PSU banking sector faced a sharp decline, while select IT stocks saw notable intraday buying.

Today, Indian share markets are trading higher with the Sensex trading up by 460 points at the time of writing, while the Nifty is trading higher by 100 points.

L&T and Titan are the top gainers from the Sensex, while Power Grid and HCL Tech 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:

From a technical standpoint, after this gap-down start, the market sought support around 19,330/64,875 and rebounded sharply.

Notably, on the daily chart, a Dragonfly Doji candlestick formation has taken shape, suggesting a strong possibility of a relief rally from the current levels. While the short-term market structure is indicative of weakness, the market is currently oversold.

As a result, a quick pullback rally from these levels may materialize.

Trading Strategy for Nifty:

For day traders seeking strategic moves, a crucial support level to watch for is 19,380/65,000.

If the market manages to maintain its position above this level, it could extend the ongoing pullback to 19,480-19,550/65,500-65,600.

However, caution is advised as selling pressure is likely to intensify if the market dips below 19,380/65,000. In such a scenario, the index might slip to 19,330-19,300/64,875-64,700.

Bank Nifty Analysis:

Bank Nifty, in comparison to Nifty, demonstrated a lackluster performance primarily due to the weakness observed in PSU banks, even in the face of continued poor performance by private banks.

To stage a recovery from the current levels, Bank Nifty heavily relies on a rebound in private banks, given their substantial weightage in the index.

The index finds support within the range of 43,500 and 43,200, presenting an opportunity for mid-term fund allocation.

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.