Last week, the benchmark indices encountered significant volatility, with the Nifty closing at 19,435 after a roller-coaster ride, and the Sensex concluding at 65,387.
Notably, the Realty and Metal sectors experienced buying interest, with Realty gaining 5.4% and the Metal index rising by 5%. However, profit booking was observed in Banking and FMCG stocks.
Today, the Indian markets are trading on a positive note with the Sensex trading higher by 165 points at the time of writing, while the Nifty is trading 67 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…
From a technical perspective, the index has formed a double bottom formation on daily and intraday charts after a prolonged correction.
This pattern signals a strong likelihood of a fresh uptrend rally from the current levels.
Additionally, a long bullish candle on daily charts supports the notion of an upcoming uptrend.
It's our belief that the corrective phase for the index has been completed, setting the stage for a sharp rebound.
For the market, the range of 19,350-19,325 is expected to act as a critical support zone for the bulls. Above this range, the index could potentially rally to 19,500. Further upside momentum could lift the index to 19,575-19,675.
Our recommended strategy is to consider buying Nifty between 19,375 and 19,325, with a stop loss at 19,220.
For Bank Nifty traders, 44,200 is a crucial support level. Above this level, the index may ascend to 44,700 and 45,000.
Conversely, if it falls below 44,200, it could potentially decline to 43,900-43,800.
The Nifty IT index appears to be heading towards 31,700. A breakthrough above this level might trigger short covering, potentially fueling bullish sentiment that could propel the index to 32,000 and 32,500 in the near term.
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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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