Indian Market Strategy for 29th Sept. | Nifty Up 89 Points; 19,400 Crucial Support Level

On the day of the monthly expiry of indices, the benchmark indices underwent a sharp decline, marking a decline of 1.10% for Nifty and a significant drop of over 600 points for Sensex.

This downturn affected major sectors such as metal, realty, pharma, technology, and finance, with the IT index experiencing a notable dip of 2%.

Today, Indian share markets are trading higher with the Sensex trading up by 246 points at the time of writing, while the Nifty is trading higher by 89 points.

Sun Pharma and NTPC are the top gainers from the Sensex, while HCL Technologies and Infosys 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:

The market faced selling pressure persistently at higher levels throughout the day, causing a downturn across most indices, barring India’s volatility index, which surged by 10%. The daily chart manifested a long bearish candle, indicating a continuation of weak sentiment in the near future.

Trading Strategy for Nifty:

For short-term traders, critical support zones are identified at 19,400/65,200 and 19,250/65,000, while pivotal resistance zones stand at 19,600 and 19,800/65,800-66,200.

Notably, the 19,250 level finds support from the 100-day SMA. The current market structure suggests volatility might persist over the next few trading sessions, making a strategy of buying on dips and selling on upswings prudent for short-term traders.

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

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:

Shifting focus to Bank Nifty, a decisive resistance level is noted at 44,750.

As long as it remains below this level, weak sentiment is expected to persist, possibly leading to a slip to 44,100-43,800 levels.

Conversely, a potential uptrend might unfold only post breaching the 44,750 mark, driving the index towards 45,000-45,200. In the Nifty IT index, a substantial drop saw it reaching 31,800 levels, with the next support identified at 31,400, corresponding to the 50-day SMA.

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.