Indian Market Strategy for 12th Sept. | Nifty Near Historic Highs; 19,850 Crucial Level

On Monday, the Nifty, India's benchmark index, scaled a new historic peak, reaching an impressive 20,008.

This remarkable achievement marks a significant milestone in the Indian financial landscape.

It's worth noting that the Nifty doubled its value, surging from 10,000 to the coveted 20,000 level, a journey spanning six years. This surge signifies robust growth and bodes well for riskier asset classes, particularly equities.

Today, Indian share markets are trading on a mixed note with the Sensex trading lower by 38 points at the time of writing, while the Nifty is trading 23 points lower.

L&T and TCS are the top gainers from the Sensex, while Power Grid and HUL 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:

In response to this bullish momentum, the Nifty concluded the day with a substantial gain of 176 points, accompanied by a Sensex surge of 528 points.

Virtually all major sectoral indices participated in this positive ascent, with PSU Banks notably shining by rallying over 3%.

From a technical standpoint, the Nifty has displayed an encouraging bullish candle on the daily charts, underpinned by a consistent pattern of higher highs and higher lows on the intraday charts. These technical indicators are strongly positive.

Trading Strategy for Nifty:

For traders following market trends, the levels of 19900-19850 stand as pivotal support.

Breaking above this level could propel the index to 20100-20175 in the near term and potentially to 20400-20500 in the medium term.

Conversely, a drop below 19800 may prompt a rapid intraday correction to 19700-19650.

In the event of a correction to the 19900-19850 level, the suggested strategy is to consider buying Nifty. Maintain a prudent stop loss at 19800.

However, between the 20100 and 20400 levels, it's advisable to partially realise profits on investments or reduce overexposure to equities.

For a detailed market analysis and strategy, check out the recent Stocks & Strategy webinar hosted by our Head of Research, Mr. Shrikant Chouhan. Click Here to watch the full video.

Bank Nifty Analysis:

Bank Nifty appears poised to ascend towards 45800-45900 levels, with support anticipated at 45400-45300 levels.

Nifty IT Index Analysis:

The Nifty IT index is expected to continue within the trading range of 33000 and 32300 levels.

To learn effective trading strategies, 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.