Yesterday, in the backdrop of the third consecutive day of profit booking, both the Nifty index and the Sensex witnessed a decline of 159 and 571 points respectively.
This trend was mirrored across major sectoral indices, with PSU banks notably experiencing a significant fall of 2.25%.
The market initiated the day with a gap-down start and remained under sustained selling pressure throughout the trading session. Over the last three days, the market has seen a substantial decrease of more than 450/1800 points.
Today, Indian share markets are trading marginally higher with the Sensex trading higher by 37 points at the time of writing, while the Nifty is trading flat.
SBI and Maruti Suzuki are the top gainers from the Sensex, while Wipro and Power Grid 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…
For bullish investors, a watchful eye on key levels is imperative. The levels around 19,700/66,000 are of particular significance, as they may mark the completion of the correction phase.
Should the index manage to trade above this level, a relief rally towards 19,825-19,875/66,500-66,750 is plausible. Conversely, a rejection below 19,700/66,000 (supported by the 20-day SMA) may trigger fresh selling, potentially causing a slide to 19,650-19,600/65,800-66,600 (50-day SMA- 19,600).
The market is currently correcting within the upward rally that spanned from 19,200 to 20,200. This correction could potentially extend to 19,600, or in the worst-case scenario, even to 19,400.
However, this presents an opportune moment for investors with a medium to long-term view. Given the oversold condition of the markets, a bounce back to counter the recent sell-off is plausible.
In such a scenario, resistance zones could be encountered at 19,850 or 20,000. The true strength would manifest post the dismissal of the 20,250 levels.
For a detailed market analysis, check out our recent webinar on Economic indicators influencing market moves hosted by Kaynat Chainwala, Senior Manager of Commodity Research. Click Here to watch the full video.
The Bank Nifty witnessed a sharp decline attributed to a sudden downturn in PSU banks, which had been exhibiting strong performance in recent days. The support for Bank Nifty is evident at 44,400 (50-day SMA) and 44,200, providing an opportune range for buying. On the higher side, resistance zones lie at 45,000 and 45,200.
Surprisingly, amidst the overall market downturn, the Nifty IT index demonstrated resilience, outperforming other major indices. Its support remains steady at 32,500. Until the IT index breaches the 32,500 level, it is likely to maintain strength and may ascend to the levels of 33,400 and 33,900.
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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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