Indian Market Strategy for 5th Sept. | Sensex Up 110 Points; 19,400 Crucial Nifty Level

On Monday, both benchmark indices exhibited positive momentum, with the Nifty closing 94 points higher, and the Sensex rising by 241 points.

Almost all major sectoral indices traded in positive territory, with notable outperformance in the PSU Banks, Metal, and IT sectors, all rallying over 2%.

Today, the Indian markets are trading on a positive note with the Sensex trading higher by 110 points at the time of writing, while the Nifty is trading 67 points higher.

Sun Pharma and Titan Company are the top gainers from the Sensex, while JSW Steel and UltraTech Cement 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, after experiencing an early morning intraday correction, the Nifty found support near the 50 and 20-day SMA (Simple Moving Average), followed by a sharp rebound.

For day traders, the 50-day SMA at 19,400 is expected to act as a critical support level.

Above this level, the index may have the potential to ascend to 19,600-19,650.

Conversely, if the index falls below 19,400, it could correct to the range of 19,350/19,300.

Trading Strategy for Nifty:

Our recommended strategy is to consider buying around the 19,400 level, with a stop loss set at 19,200.

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:

For the Bank Nifty, the 20-day SMA played a significant role as major support.

After touching this level, the index rebounded to 44,700 but encountered resistance at the same level. A move above 44,750 might pave the way for an advance towards 45,000.

Nifty IT Analysis:

The Nifty IT index performed exceptionally well, currently standing at 32,000. Monitoring this sector closely is advisable, as it has the potential to reach the 33,000 level.

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.