On Tuesday, the benchmark indices experienced substantial profit-booking at elevated levels, leading to a slight dip in the Nifty, which closed 12 points lower. In contrast, the Sensex managed to gain 94 points.
This profit-booking was widespread across most sector indices, while midcap and small-cap stocks, along with media and realty sectors, bore the brunt. On a more positive note, the IT index saw a gain of around 1%.
Today, Indian share markets are trading on a mixed note with the Sensex trading lower by 86 points at the time of writing, while the Nifty is trading 13 points lower.
ITC and Power Grid Corporation are the top gainers from the Sensex, while Bajaj Finserv and M&M are the top losers.
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Here’s a rundown of today’s expected market movements…
From a technical perspective, the market is currently grappling with selling pressure following a gap-up opening. However, it's essential to note that the medium-term structure of the market remains on a positive trajectory. This suggests that while short-term fluctuations may occur, the broader outlook remains optimistic.
For traders, key support levels lie at 19,900/67,000, offering a strong foundation for the market.
On the upside, immediate resistance zones are anticipated around 20,070-20,110/67,450-67,540.
Traders are advised to consider selling on upswings until the market convincingly breaches the 20,110/67,540 mark. In the event that 19,900 is breached, the Nifty may experience a decline to the 19,800-19,750 range.
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The Bank Nifty faces a formidable resistance zone spanning 45,700-45,900, which it must overcome for any substantial upside.
A prudent approach here is to consider selling near the 45,700 mark, with a tightly managed stop loss at 45,900.
On the downside, support levels are situated at 45,300 and 45,000.
The Nifty IT index is steadily progressing towards 33,350, where it encounters a significant resistance level.
A breakthrough at this point could propel it to the 34,200 level, potentially altering the sector's outlook.
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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.
See you tomorrow!
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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