In the past week, the benchmark indices experienced significant volatility, with the Nifty closing at 19,265 and the Sensex closing at 64,886 after a roller-coaster ride.
Among sectors, the Media, Digital, and Private Bank indices rose over 1%, while the PSU Bank, Pharma, and Oil & Gas indices each declined over 1%.
Today, the Indian markets are trading on a positive note with the Sensex trading higher by 243 points at the time of writing.
Check out this short video for detailed market update: Market Ready by Kotak Securities Here’s a rundown of today’s expected market movements…
Technically, the week began on a positive note, but after a short-term rally, the index faced severe profit booking near the 20-day SMA (Simple Moving Average).
The market continued to grapple with selling pressure at higher levels. Adding to the negative sentiment, the Nifty closed below the 50-day SMA after a long period.
We believe that the short-term market structure is negative.
For positional traders, the trend-deciding level lies at 19350. Above this level, the market could move towards 19500. Conversely, if the index trades below 19230, selling pressure is likely to intensify, potentially leading the market to slide till 19180-19100-19000 levels.
For the Nifty, given the negative short-term structure, consider caution in trading.
Positional traders might look for buying opportunities between 19000 and 18800, focusing on large-cap companies with a medium to long-term view.
For Bank Nifty, on the lower side, 44000 serves as a major support area, while 44750, the 50 and 20-day SMAs, and 45000 may act as immediate resistance areas for the upside. If it falls below 44000, the index may retest 43600-43350 levels.
In the Bank Nifty, watch for buying opportunities if it finds support around 44000. On the upside, keep an eye on the resistance areas mentioned.
The Nifty IT index is exhibiting mixed sentiment. Above 31300, it could rise to 31700, while it could fall to 30500 if it drops below the level of 30750.
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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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