Indian Market Strategy for 9th Oct. | Nifty Down 144 Points; 19,457 Crucial Level

The past week witnessed a rollercoaster ride in benchmark indices. Nifty, after a series of volatile movements, settled at 19,654, and Sensex concluded at 65,996.

The realty index stood out with a gain of nearly 2%, while pharma and energy indices saw profit-booking at elevated levels.

Today, Indian share markets are trading lower with the Sensex trading down by 423 points at the time of writing, while the Nifty is trading down by 144 points.

Here’s a rundown of today’s expected market movements…

Nifty Technical Analysis:

Despite a negative start, technically, the index exhibited resilience by finding support near 19,350/64,900 after substantial losses and staging an impressive comeback.

At present, Nifty is trading in close proximity to the 50-day SMA and weekly charts display a hammer-like structure, hinting at a potential positive reversal.

Trading Strategy for Nifty:

Our outlook leans towards continued positive sentiment in the short term as long as Nifty maintains trading above 19,200. An ascent to the crucial resistance zone of 20,000 could be anticipated upon surpassing 19,770.

However, immediate focus should be on the trend decider level at 19,457. Sustaining strength above this level is crucial. A fall below 19,457 could prompt a retreat to 19,330 and 19,200 levels.

The proposed strategy involves buying within the range of 19,550 and 19,460 levels, implementing a stop loss at 19,400.

Bank Nifty Analysis:

For Bank Nifty, a pivotal support zone is at 44,000. Surging above this, it may ascend towards the 50-day SMA or the range of 44,800 - 45,000.

Conversely, dipping below 44,000 could steer the index towards 43,800 or 43,600 levels.

In the realm of IT, a sturdy comeback from lower levels was witnessed.

Further strength could propel a rally towards 33,400 after crossing 32,500. However, weakening sentiment might follow the dismissal of 31,300.

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.