The positive momentum in the benchmark indices persisted, with the Nifty closing 147 points higher and the Sensex up 529 points.
Notably, media and banking sectors outperformed, while auto stocks faced profit-booking despite strong momentum.
Today, the Sensex is currently trading up by 311 points or 0.5%, while the Nifty is trading at 19,792 levels - up 81 points or 0.4%.
Among stocks, Infosys and ICICI Bank are the top gainers from the Sensex, while Titan and Tata Motors are the top losers.
Here’s a rundown of today’s expected market movements…
Yesterday, from a technical standpoint, the market displayed positive momentum throughout the day following last Friday's breakout. The index formed a bullish candle on the daily chart and a breakout continuation formation on the intraday chart.
While the overall market structure remains bullish, taking profits on long positions may be a prudent strategy.
For trend traders, the support level at 19,600 holds significant importance.
Above 19,600, the index may witness a gradual slide towards 17,800-17,825.
In the event of Nifty falling to 19,600, a buying strategy with a final stop loss at 19,500 would be ideal.
The next major hurdle for the Bank Nifty stands at 45700, and upon surpassing this level, it would target 46000 and 46300.
On the downside, support can be found at 45200 and 45000 levels.
The Nifty IT index reached its highest level in four months but encountered substantial profit-taking in frontline stocks.
Nonetheless, a strategic approach would be to buy at support levels between 30900 - 30700.
All in all, the positive momentum in the benchmark indices remains intact, with the Nifty recording significant gains.
Traders should closely monitor the key support and resistance levels mentioned in the analysis to make informed trading decisions. Taking profits on long positions is advisable, considering the overall market structure.
Stay tuned for further updates and opportunities in the market.
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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