Indian Market Strategy for 4th Oct. | Nifty Trades Lower; 19,350 Crucial Support Level

Yesterday, the Indian benchmark indices witnessed a gradual decline primarily influenced by weak global sentiments. Nifty, the key indicator, concluded the day 116 points lower, and its counterpart, the Sensex, experienced a downturn of 316 points.

This decline was notably marked by profit booking in energy, auto, and metal stocks.

However, some buying activity was observed in select FMCG stocks due to a fall in crude prices.

Today, Indian share markets are trading lower with the Sensex trading down by 550 points at the time of writing, while the Nifty is trading lower by 165 points.

Nestle India and HUL are the top gainers from the Sensex, while Axis Bank and NTPC are the top losers.

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 analyzing the market, after the morning selling, the index found support at 19,480/65,344.

On the daily chart, a bearish candle has taken shape, and on the intraday chart, a consistent lower top formation is being maintained, signaling a negative trajectory. Despite this short-term weakness, it's important to note that the market is currently oversold.

Consequently, a quick pullback rally may materialize in the near future.

Trading Strategy for Nifty:

For bullish traders eyeing potential opportunities, the immediate resistance zone stands at 19,580/65,800.

If the index successfully crosses this level, there's a possibility of an upward movement towards 19,700-19,750/66,200-66,350.

On the other hand, strong support zones can be identified at 19,480/65,350 and 19,400/65,200.

However, a closing below 19,400/66,250 might amplify selling pressure, potentially directing the index towards 19,350-19,200/65,000-64,750.

It is recommended to strategize trades based on these given levels.

Bank Nifty Analysis:

Shifting focus to the Bank Nifty, it is currently showcasing stronger performance in the short term.

However, a gradual decline could be on the horizon, leading to levels around 43,800-43,600, if it falls below 44,100. Key resistance levels for the Bank Nifty are pegged at 44,500 and 44,750.

To learn trading strategies you can apply in the current market, check out our expert-led courses by clicking HERE.

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.