Indian Market Strategy for 18th Sept. | Nifty Trades Flat; 20,000 Crucial Level

In the past week, the stock market exhibited a robust upward trend, reflecting significant gains across indices.

The Nifty index notably surged, closing 1.75% higher, while the Sensex index witnessed a substantial gain of 1240 points.

Notably, the PSU Bank index stood out, showcasing an impressive performance with an approximate 7% increase. However, media stocks experienced profit-booking at higher levels, resulting in the Media index falling by over 3.5%, despite the overall strong market momentum.

Today, Indian share markets are trading on a negative note with the Sensex trading lower by 95 points at the time of writing, while the Nifty is trading 11 points lower.

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:

The market successfully breached the short-term resistance at 20,000/67,200, accelerating its upward momentum.

The index formed a breakout continuation pattern on daily and weekly charts, affirming the potential continuation of the bullish trend in the near future.

It's essential to acknowledge the possibility of some profit-booking at higher levels due to the temporary overbought scenario.

Trading Strategy for Nifty:

For short-term traders, focus should be on the critical support zones at 20,000/67,200 and 19,900/66,900.

Conversely, bullish traders may encounter a vital resistance zone at 20,300-20,400/68,100-68,500.

The recommended trading strategy involves buying on dips and selling on rises, aligning with the prevailing market sentiment.

For a detailed market analysis and trading strategy, check out the recent Option Chain Analysis webinar hosted by our AVP of Derivatives Research, Prasenjit Biswas. Click Here to watch the full video.

Bank Nifty Analysis:

The Bank Nifty holds a pivotal support zone between 45,800 and 45,600.

Maintaining a trading position above this level could brighten the prospects of the bullish trend, potentially driving the index towards 46,700-47,000.

Nifty IT Index Analysis:

The Nifty IT index made a significant move by re-entering the gap area that was observed in April 2023.

Above 33,366, the index faces no resistance until 34,204, suggesting a promising performance in the near term. However, dipping below 33,100 could gradually lead to a decline to 32,700 levels.

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.