Nifty Strategy for September 01 | Sensex Up 119 Points, Monthly Expiry Day Sees Correction

On the day of monthly expiry, the benchmark indices underwent a notable correction, with the Nifty closing 94 points lower, and the Sensex down by 256 points.

Almost all major sectoral indices faced profit booking at higher levels, with the PSU Banks and Oil and Gas sectors experiencing the most significant losses, both shedding over 1%.

Today, the Indian markets are trading on a positive note with the Sensex trading higher by 119 points at the time of writing, while the Nifty is trading 48 points higher.

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:

Technically, after the dismissal of 19320, selling pressure intensified. On intraday charts, the index constantly encountered selling pressure at higher levels. Additionally, the daily chart formation showcased a bearish candle, signalling a negative sentiment. The market appears to remain range-bound but is trading with a bearish bias.

For the market, the range of 19220-19180 is expected to act as a critical support zone. If the index trades above this range, a bounce-back till 19280-19320 could be in the cards.

Conversely, if it falls below 19180, the selling pressure might escalate, possibly leading the market to slip till 19100-19050.

We anticipate that the market might consolidate between 19180 and 19280 before a potential descent to 19100-19050 levels. A prudent selling strategy could be considered between 19270 and 19320 levels, with a vital stop loss at 19400.

Trading Strategy for Nifty:

For Nifty, exercising caution is advised due to the ongoing bearish sentiment. Traders should be watchful of the support range while considering potential bounce-back opportunities.

Bank Nifty Analysis:

The Bank Nifty finds robust support at 43600, and any breach below that level could gradually lead it to 43300-43350 levels.

On the resistance front, the index is likely to face hurdles around 44000 levels.

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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!

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.