Nifty Strategy for 4th August | Sensex Up 275 Points, Dabur and Cipla Top Gainers

The weak momentum in the benchmark indices continued, with the Nifty closing down 145 points and the Sensex down 542 points.

Realty and banking stocks declined sharply, while buying was seen in pharma and select cement companies despite a weak market sentiment.

Check out this short video for detailed market update: Market Ready by Kotak Securities

Today, Indian share markets are trading on a positive note.

At the time of writing, the BSE Sensex is trading higher by 275 points. Meanwhile, the NSE Nifty is trading up by 82 points.

Among stocks, Cipla and Dabur are the top gainers from the Sensex, while Bajaj Auto and Sun Pharma are the top losers.

Here’s a rundown of today’s expected market movements…

Nifty Technical Analysis:

Technically, after a slow start, the index broke the important support level of 19400 yesterday, accelerating into a bearish momentum.

However, it reduced some losses in the last hour of the trade.

Currently, the index is trading comfortably below the 20-day SMA (Simple Moving Average).

Our analysis suggests that the market has a weak short-term structure but is oversold.

Hence, if the market trades above 19350, there could be a decent bounce back. The market may extend higher towards 19450-19550.

On the other hand, selling pressure below 19350 is likely to extend towards 19300-19250.

Trading Strategy for Nifty:

For the Nifty, consider buying between 19350 and 19300, and keep the stop loss at 19200.

If the index bounces back from the mentioned support levels, target potential upside towards 19450-19550 levels.

Bank Nifty Analysis:

Bank Nifty managed to sustain above the 44500 level on a closing basis, which may improve the sentiment. Support would be at 44350 and 44100.

In the Bank Nifty, consider buying between 44350/44250 and keep the stop loss at 44000.

Nifty IT Index:

The Nifty IT index is in a broad trading range and may move higher towards 30000/30200 in the near term.

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All in all, caution is advised for day traders, and monitoring the key support and resistance levels is crucial for making trading decisions. Stay alert for potential movements in the realty and banking sector.

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.