Indian Market Strategy for 11th Sept. | Sensex Up 403 Points; 19,725 Crucial Nifty Level

Last week, the benchmark indices maintained their positive momentum, with Nifty surging by an impressive 1.98%, and Sensex notching gains of over 1200 points.

Notably, all major sectoral indices traded in the green, with media and realty sectors standing out with remarkable gains of over 5%.

Today, Indian share markets are trading on a firm note with the Sensex trading higher by 403 points at the time of writing, while the Nifty is trading 67 points higher.

Maruti Suzuki India and JSW Steel are the top gainers from the Sensex, while Bajaj Finance and IndusInd 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…

Nifty Technical Analysis:

From a technical perspective, these indices have exhibited a commendable trend, forming consecutive higher bottoms following a promising reversal.

Moreover, they are presently comfortably trading above the 50 and 20-day Simple Moving Averages (SMA), a notably bullish signal.

Trading Strategy for Nifty:

For traders who follow market trends, it's crucial to monitor key support levels at 19700-19650.

On the upside, resistance can be expected in the vicinity of 19950-20000.

Should the Nifty/Sensex successfully surpass the 20000 mark, we could anticipate further upside, with potential openings at the 20400-20500 level over the next few weeks.

Conversely, a downturn below 19600 may introduce additional weakness, potentially leading to a short-term correction towards the 50-day SMA at 19500.

Our recommended strategy is to consider purchasing Nifty if it corrects to the 19725-19675 level, with a prudent stop loss set at 19600.

For a detailed market analysis and strategy, check out the recent Stocks & Strategy webinar hosted by our Head of Research, Mr. Shrikant Chouhan. Click Here to watch the full video.

Bank Nifty Analysis:

Turning to Bank Nifty, its recent crossing of the 50-day SMA after an extended period is a positive development.

Moreover, it has formed a higher bottom formation, providing solid support for an extended uptrend.

For traders looking at a broader perspective, the 44700 level, along with the 50-day SMA, is expected to be a pivotal support zone. Should Bank Nifty remain above this level, it may surge to 45600-45900. Conversely, a dip below 44700 could trigger a retest of the 20-day SMA at 44300-44000.

Nifty IT Index Analysis:

Regarding the Nifty IT index, a significant barrier is projected at 32600. Breaking past this level could potentially pave the way for further gains, targeting 33000 and 33300 in the near term. However, if the index falters and drops below 32400, it may gradually descend towards 32100.

To learn effective trading strategies, 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.