The benchmark indices maintained their positive momentum for the third consecutive day, with the Nifty closing 49 points higher and the Sensex ending 152 points higher.
Among sectors, the media index emerged as the top gainer in yesterday’s session, surging over 3%. However, some profit-booking was witnessed in banking and select auto stocks during intraday trading.
Today, Indian share markets are trading on a flattish note with the Sensex trading lower by 76 points at the time of writing, while the Nifty is trading 67 points higher.
Maruti Suzuki India and L&T are the top gainers from the Sensex, while NTPC and UltraTech Cement are the top losers.
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Here’s a rundown of today’s expected market movements…
From a technical perspective, the index is trading comfortably above its 50 and 20-day Simple Moving Average (SMA) following a sharp reversal.
Notably, it is consistently forming higher-lower formations on intraday charts, a positive sign.
It's crucial to note that the markets are nearing a resistance zone, presently situated between 19620 and 19650.
Given this, our recommended strategy is to consider partial profit-taking on long positions or alternatively, take a contrarian approach by selling Nifty within the range of 19600 and 19650, while ensuring a stop loss at 19700.
The support zone is notably distant from current levels, located between 19500-19400.
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For Bank Nifty, the support zone is identified between 44500 and 44400.
If it manages to climb above 44750, it may reach the 45000 level.
A resilient Bank Nifty might not breach the 44400 level. Nevertheless, if it drops below 44400, it could potentially descend to 44200-44100 levels.
The Nifty IT index maintains a support zone within the 32100 and 32000 range.
Our recommended strategy for this sector is to consider buying on dips.
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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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