Indian Market Strategy for 21st Sept. | Nifty Down 125 Points; 19,750 Crucial Level

Yesterday, benchmark indices continued to experience profit-booking at higher levels, marking a sharp correction. Nifty concluded the day with a decline of 224 points, and Sensex experienced a notable downturn of 796 points.

The intraday performance across various sectors echoed this trend, with almost all major sector indices witnessing profit-booking.

Notably, the metal index emerged as the top loser, experiencing a decline of over 1.5%.

Today, Indian share markets are trading on a negative note with the Sensex trading lower by 468 points at the time of writing, while the Nifty is trading 125 points lower.

SBI and Tech Mahindra are the top gainers from the Sensex, while HCL Tech. and ICICI Bank 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:

From a technical standpoint, the indices faced increased selling pressure right from the market opening, breaking the critical threshold of 20,000/67,100.

The day's closure below the levels of 19,910 further exacerbated the negative sentiment.

Trading Strategy for Nifty:

In light of this, our strategy advocates a cautious approach. While the intraday market structure appears weak, temporary oversold conditions might pave the way for range-bound activity in the near term.

For those on the bullish front, the levels of 20,000-20,030/67,100-67,300 present an immediate resistance zone. Conversely, the range of 19,850-19,750/66,700-66,300 emerges as a crucial support zone for traders.

For day traders, a prudent strategy involves buying on dips between 19,850 and 19,750, and strategically selling on an upswing at 20,000/67,350.

For a detailed market analysis, check out our recent webinar on Economic indicators influencing market moves hosted by Kaynat Chainwala, Senior Manager of Commodity Research. Click Here to watch the full video.

Bank Nifty Analysis:

In the realm of the Bank Nifty, the support area hovers around 45,100/44,900. Traders with a medium-term view might find opportune moments to buy within this bracket.

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.