NIFTY OUTLOOK & OPTION TRADING TIPS FOR 10 OCT 2024

 

Market Report: Indian Equity Indices Close Marginally Lower Amid Volatility – October 10, 2024

On October 10, Indian equity indices concluded a volatile trading session with marginal declines, as concerns about inflation weighed on investor sentiment.

Key Indices Performance:

• Sensex closed at 81,467.10, down by 167.71 points or 0.21%.
• Nifty ended at 24,982, down 31.20 points or 0.12%.

Despite early gains, profit booking toward the close dragged the indices down. The Nifty opened higher, but it struggled to maintain momentum, closing just above the 20-day moving average (20DMA). As a result, the short-term trend remains positive, provided the index holds above 24,940. A drop below this level could lead to a further correction toward 24,800 or 24,700, while 25,100 serves as an immediate resistance level.

Key Market Highlights:

• Inflation Concerns: The Reserve Bank of India's (RBI) upward revision of Q3FY25 inflation estimates fueled worries over persistent inflationary pressures. This led to caution among investors, resulting in profit booking, particularly in FMCG stocks.
• RBI's Neutral Stance: Although the change in the RBI's stance to neutral was anticipated, the absence of signals for a near-term rate cut added to market uncertainty.
• Sectoral Performance:
  • FMCG was the biggest laggard, down 1.57%, followed by Energy.
  • On the upside, Pharma and Realty sectors were the best performers, each gaining between 1-2%.
• Midcap and Smallcap Outperformance: The BSE Midcap and Smallcap indices rose by over 1%, outperforming the broader market. Investors appeared to focus on stock-specific opportunities amid the market correction.

Top Nifty Gainers:

1. Trent
2. Cipla
3. Tata Motors
4. SBI
5. Maruti Suzuki

Top Nifty Losers:

1. ITC
2. Nestle
3. Reliance Industries
4. ONGC
5. HUL

Outlook: While volatility remains high, support and resistance levels are crucial for determining market direction. A breach below 24,750 could signal a bearish trend, while a breakout above 25,200 would suggest bullish momentum. Investors are advised to monitor these levels closely to assess the near-term outlook.

Market Outlook: Indian Equity Indices – October 7, 2024

Summary:

Indian equity indices faced significant selling pressure on October 4, marking the fifth consecutive session of losses. The Nifty index, which briefly dipped below the 25,000 mark during intraday trading, closed at 25,049.80, down 200.30 points (-0.79%). The Sensex followed a similar trend, closing at 81,688.45, down 808.65 points (-0.98%). The broader market exhibited profit booking, with a nearly 1% decline in both Midcap and Smallcap indices.

Market Performance:

• Nifty 50: Closed at 25,049.80, down 200.30 points (-0.79%).
• Sensex: Closed at 81,688.45, down 808.65 points (-0.98%).
• Advance/Decline Ratio: 1,522 shares advanced, 2,266 shares declined, and 101 remained unchanged.

Sector Performance:

• Top Losers: M&M, Bajaj Finance, Nestle India, BPCL, Asian Paints.
• Top Gainers: Infosys, ONGC, Tata Motors, Wipro, HDFC Life.
• Sectoral Indices:
  • Gainers: IT and PSU Bank sectors were the only sectors to show positive performance.
  • Losers: Realty, FMCG, Auto, Power, Media, Telecom, and Oil & Gas indices declined by 1-2%.

Market Drivers:

1. Geopolitical Tensions: Increasing tensions in West Asia and rising crude prices have raised concerns about inflation, dampening expectations for a rate cut by the Reserve Bank of India (RBI) in the upcoming policy meeting.
2. Foreign Institutional Investment (FII): There has been noticeable selling by foreign investors, adding further pressure on the market.
3. Volatility Index: A rise in the volatility index indicated increasing market uncertainty, leading to profit booking.

Technical Analysis:

• The Nifty has shed 1,310 points (-5.2%) since reaching a fresh high of 26,277 last week.
• A key resistance level to watch is 25,600; the overall market bias will remain negative unless this level is reclaimed.

Outlook:

Markets are expected to consolidate in the coming week amid cautious sentiment, especially with the earnings season starting soon. Traders should pay attention to interest-sensitive stocks in light of the RBI policy meeting next week, where while a rate cut may not be on the table, the accompanying commentary will be crucial.

Recommendations:

• Hedging Strategy: Given the current market volatility, adopting a hedged approach is advisable.
• Focus on Resilient Sectors: Key sectors like IT, metals, and pharma have shown resilience; consider reallocating investments toward these sectors while being cautious with those under pressure.
• Stock-Specific Action: Monitor individual stock performances closely as earnings results may drive specific stock movements.

Conclusion:

The Indian equity market continues to experience a corrective phase amid geopolitical concerns and profit booking. With the earnings season approaching and a pivotal RBI policy meeting on the horizon, market participants should remain vigilant and adjust their strategies accordingly.

NIFTY OUTLOOK FOR 1 OCT 2024

Market Overview: On September 30, Indian equity indices ended on a weak note, with the Nifty closing below 25,850. The Sensex was down 1,272 points (1.49%) at 84,299, while the Nifty declined 368 points (1.41%) to close at 25,810. Market breadth remained negative as 2,107 shares declined, 1,757 shares advanced, and 148 shares remained unchanged.

Sectoral Performance:

• Top Gainers: Metal and Media sectors ended higher, with a 1% rise each.
• Top Losers: Other sectors such as Auto, Banking, IT, Telecom, Pharma, and Realty witnessed a decline of 1-2%.

Key Stock Movers:

• Top Gainers: JSW Steel, Hindalco Industries, NTPC, Tata Steel, and Britannia Industries.
• Top Losers: Hero MotoCorp, Trent, Axis Bank, Reliance Industries, and Bharat Electronics.

Broader Market Performance:

• BSE MidCap Index: Ended with marginal losses.
• BSE SmallCap Index: Ended flat.

Currency Market: The Indian Rupee weakened, driven by a combination of weak domestic equity markets and a surge in crude oil prices. The US Dollar softened due to weaker-than-expected core PCE price index and personal income data from the US, raising hopes for a potential rate cut by the Federal Reserve. However, Dollar demand from importers and month-end profit booking from oil marketing companies (OMCs) pressured the Rupee.

• USDINR Outlook: Expected to trade between Rs 83.60 and Rs 84 due to continued domestic market weakness, rising crude oil prices, and geopolitical tensions in the Middle East. However, the weakness in the US Dollar could support the Rupee.

Retail Investor Sentiment: Retail investors turned net sellers in September 2024, ending a five-month buying streak. They offloaded shares worth Rs 7,500 crore, the largest sell-off since March 2024. This contrasts with the activities of both foreign and domestic institutional investors, who continued to pour money into Indian equities:

• Domestic Institutional Investors (DIIs): Purchased shares worth Rs 17,421 crore in September.
• Foreign Institutional Investors (FIIs): Bought shares worth Rs 55,855 crore during the same period.

Analysts attribute the sell-off by retail investors to profit-booking at higher levels and the attraction of IPOs. Many investors have shifted their focus to newly launched public issues, leading to a sell-off in the secondary market, even in stocks that saw significant listing gains.

Market Trends in September:

• Sensex Performance: +3.9% for the month.
• Nifty Performance: +3.7% for the month.
• MidCap Index: +0.9% for the month.
• SmallCap Index: +1.91% for the month.

Year-to-Date Performance:

• Sensex: +18.5%
• Nifty: +20%
• MidCap Index: +34%
• SmallCap Index: +34%

Outlook: Investors will closely monitor India’s fiscal deficit and current account deficit data for further market cues. Additionally, the US economic reports, such as the ISM Manufacturing PMI and non-farm payrolls, are likely to influence the markets in the upcoming week. Geopolitical tensions in the Middle East and fluctuations in crude oil prices may further add volatility to the Indian equity market.

NIFTY BANKNIFTY OUTLOOK FOR 30 SEP 2024

Market Overview:

Indian benchmark indices ended lower on September 27, 2024, following a day of profit booking after consecutive days of gains. The Nifty 50 closed at 26,179, down by 37 points (0.14%), while the Sensex fell 264 points (0.31%) to close at 85,571. Despite the decline, the market sentiment remains strong, as both indices continue to stay above critical moving averages, indicating a positive trend if supported levels hold.

Key Takeaways:

• Support Levels:

  • For Nifty, the 25,900-26,100 zone acts as a key support area. Below 25,900, sentiment may weaken, prompting traders to exit long positions.
  • For Bank Nifty, 53,100-53,500 is the key support zone, with a potential downtrend if it breaches 53,100.

• Resistance Levels:

  • Nifty faces resistance at 26,300, which could trigger a fresh rally towards 26,600.
  • For Bank Nifty, 54,500-54,800 is a key profit booking zone for the bulls.

Market Performance:

Despite today's pullback, the Nifty gained 1.5% over the past week, driven by robust buying in the metal and auto sectors. The Metal Index surged 7%, while the Auto Index rose 4.5% during the week. Notably, the market successfully cleared the 26,000 (Nifty) and 85,000 (Sensex) resistance levels, fueling further bullish momentum.

Sectoral Highlights:

• Top Performers:

  • BPCL, Cipla, Sun Pharma, Coal India, and Reliance Industries gained between 0.3-2.5%, contributing to the market’s resilience.
  • BSE Metals, Oil & Gas, Auto, IT, and Pharma sectors saw positive movements, with metals leading the gains.

• Underperformers:

  • Realty, Banking, Telecom, FMCG, and Power sectors experienced declines, with key losers including Power Grid Corp, Bharti Airtel, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.

Global Market Influence:

Global cues were mixed, with China’s stock market rallying due to economic stimulus measures. However, caution prevailed ahead of the release of US inflation data. Crude oil prices hovered around $70 per barrel, impacting the performance of oil-related stocks.

Outlook:

The overall market sentiment remains bullish, but traders are advised to adopt a “buy on dips, sell on rallies” strategy. If Nifty sustains above 26,100, the current uptrend could continue with resistance levels at 26,400-26,500 in the short term. Bank Nifty, however, may exhibit range-bound movement in the near term due to overbought conditions.

Key Support Zones:

• Nifty: 26,000 - 25,900
• Bank Nifty: 53,500 - 53,100

Key Resistance Levels:

• Nifty: 26,400 - 26,500
• Bank Nifty: 54,500 - 54,800

Conclusion:

While the Indian markets ended lower on profit-booking today, the overall texture remains bullish. However, the upcoming Q2 earnings season and global economic developments, such as the US inflation data, will likely influence near-term trends. Traders should keep an eye on key support and resistance zones while strategizing their positions.

NIFTY OUTLOOK FOR 27 SEP 2024

Key Highlights:

• Nifty closes above 26,200 for the first time, ending the session at 26,216.05, up by 211.80 points or 0.81%.
• Sensex surged 666.25 points or 0.78%, closing at 85,836.12.
• All major sectors rallied, with Auto, Metal, and FMCG leading gains.
• Midcap index ended flat, while the Smallcap index declined by 0.4%.

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Market Overview: On the monthly expiry day, Indian equity indices closed at record highs, driven by favorable global cues, rotational buying, and positive sectoral participation. Nifty showed strong momentum in the second half, closing above 26,200, marking a significant psychological milestone. Despite the broader indices showing mixed performance, key sectors, especially Auto and Metal, supported the rally.

The Sensex surged by 666.25 points to close at 85,836.12, reflecting a 0.78% gain. Nifty moved up 211.80 points to finish at 26,216.05, up by 0.81%. The broader market, however, showed signs of caution as 1,603 shares advanced and 2,200 shares declined, suggesting selective stock-picking.

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Sectoral Performance:

• Top Gainers:

  • Auto and Metal sectors gained around 2% each, showing robust buying interest.
  • FMCG and PSU Bank indices were up 1% each, contributing to the positive market sentiment.

• Underperformers:

  • The Capital Goods index was the lone laggard, down by 0.6%, reflecting some profit-booking.

• Broader Market:

  • The BSE Midcap index ended flat, indicating subdued performance in mid-cap stocks.
  • The Smallcap index declined by 0.4%, continuing its recent underperformance.

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Top Gainers:

• Maruti Suzuki
• Tata Motors
• Shriram Finance
• Grasim Industries
• Mahindra & Mahindra (M&M)

Top Losers:

• ONGC
• Cipla
• NTPC
• Hero MotoCorp
• Larsen & Toubro (L&T)

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Technical Analysis:

• Nifty Outlook:
  Nifty has broken out of its consolidation phase, signaling strong bullish momentum. On the daily charts, the index formed a Marubozu Open candlestick pattern, indicating a firm grip of bulls. Nifty is now heading towards the upper end of the rising channel at 26,560, with immediate support at 25,970. The upward trend remains intact, and any move below 26,000 could indicate caution, but the overall sentiment is expected to remain positive.

• Bank Nifty:
  Bank Nifty broke out of its sideways consolidation range of 53,800 – 54,300 on the upside, indicating strength. The next target for Bank Nifty is around 55,000, with immediate support at 54,000 – 53,900.

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Global & Domestic Cues: Global markets have been buoyed by falling bond yields in the US and stimulus measures in China, contributing to renewed optimism in equity markets worldwide. Domestically, positive sentiment and strong buying in rate-sensitive sectors such as Banking, Auto, and Realty continue to push the indices higher.

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Outlook for September 27, 2024:

• The current trend indicates a continuation of the bullish momentum with Nifty targeting 26,500 in the coming sessions.
• Investors are advised to maintain caution, with trailing stop-losses at 26,000 to protect against sudden reversals.
• Sector Watch: Focus on rate-sensitive sectors like Auto, Banking, Realty, and Financials, while selectively picking stocks in Metal and Energy sectors.

NIFTY OUTLOOK FOR 26 SEP 2024

The record-breaking run continued on Dalal Street as the Nifty Index managed to close above 26,000 for the first time, led by gains in energy, metal, and media sectors. After a volatile session, the Sensex gained 255.83 points or 0.30%, closing at 85,169.87, while the Nifty was up 63.80 points or 0.25%, finishing at 26,004.20. The day witnessed a mix of subdued movement and a sharp rally in the final hour of trading, pushing Nifty near its intraday high.

Key Highlights:

• Nifty 50: Closed at 26,004.20 (+0.25%)
• Sensex: Closed at 85,169.87 (+0.30%)
• Market Sentiment: Range-bound for most of the session but turned positive toward the close, driven by short-covering ahead of the monthly expiry.

Sectoral Performance:

1. Top Performers:
   • Energy: Steady gains due to positive momentum in power stocks.
   • Metals: Strong buying seen in the sector, supporting Nifty's rally.
   • Media: Led the day’s performance with significant gains.
   • Realty: Saw a notable uptick driven by positive sector-specific developments.
2. Laggards:
   • IT & FMCG: Both sectors underperformed, with notable selling in IT stocks like LTIMindtree and Tech Mahindra.
   • PSU Banks: Weakness observed due to profit-taking in some midcap and smallcap counters.

Stock Performers:

• Top Gainers:
  • Power Grid Corp, NTPC, Axis Bank, Grasim Industries, Bajaj Finserv.
• Top Losers:
  • LTIMindtree, Tech Mahindra, Tata Consumer, Tata Motors, Titan Company.

Midcap & Smallcap Performance:

• Both Midcap and Smallcap indices experienced a minor correction, down 0.5% each. This suggests profit-booking in broader markets, putting pressure on overall market breadth.

Technical Overview:

• The Nifty opened mildly in the red, consolidated with a positive bias throughout the day, and rebounded from the 25,850–25,875 support zone to close above 26,000.
• The daily chart shows a bullish candle, indicating that the uptrend remains intact.
• Resistance: The Nifty faces a strong resistance between 26,200–26,250, while support has shifted higher to the 25,950 level.
• Bollinger Bands: Nifty is expected to continue its rally towards 26,300, where the weekly upper Bollinger band is located.

Bank Nifty Outlook:

• Bank Nifty consolidated with a positive bias and witnessed subdued price action due to the upcoming monthly expiry.
• The current consolidation phase is likely to break out on the upside, with a potential rally towards the 55,000 mark in the short term.
• Support: The critical support level for Bank Nifty is placed at 53,800 – 53,600.

Market Breadth:

• The overall market breadth remained negative, with 1,637 shares advancing against 2,148 shares declining, indicating broader market weakness due to profit-taking, especially in midcap and smallcap stocks.

Outlook:

We maintain a bullish outlook as the Nifty continues to show strong momentum, especially in metal, power, and energy stocks. Despite broader market weakness, sectoral outperformance in energy and realty, along with resilience in Nifty's uptrend, suggests continued strength.

However, traders should remain cautious as global uncertainties and profit-booking in the broader market could lead to intermittent corrections. The ongoing correction in the IT sector may present a buying opportunity for long-term investors.

Key Levels:

• Nifty Support: 25,950
• Nifty Resistance: 26,200 – 26,250
• Bank Nifty Support: 53,800 – 53,600
• Bank Nifty Target: 55,000 in the short term

Investors should focus on stock selection aligned with sectoral trends, with energy and metal sectors showing strong momentum.

NIFTY OUTLOOK FOR 25 SEP 2024

Market Overview:

The Indian equity markets witnessed a mix of bullish and bearish activity in today’s volatile trading session. The session started on a muted note, with the Nifty Index correcting slightly before oscillating within a narrow range. The Information Technology (IT) sector provided significant support, helping the Index surpass the psychological barrier of 26,000. However, the gains were wiped off towards the end, with the Nifty closing just below the 26,000 mark.

The market was characterized by mixed performance across sectors, with Metals leading the gainers and Public Sector Banks (PSU Banks) emerging as the major laggards. The broader markets showed a diverging trend, with Midcaps outperforming the frontline Index, while Smallcaps ended the session in the red.

Key Market Data:

• Nifty closed at 25,940.40, up by 1.40 points or 0.01%.
• Sensex closed at 84,914.04, down by 14.57 points or 0.02%.
• Market breadth was mixed with 1,871 shares advancing, 1,946 shares declining, and 84 shares remaining unchanged.

Technical Analysis:

A Spinning Top candlestick pattern formed at record levels, signaling indecisiveness between bulls and bears. This pattern suggests that while the market touched high levels, the fight between buyers and sellers intensified, leading to a flat close.

• Resistance: A strong breakout above 26,000 will pave the way for the Nifty to reach 26,100.
• Support: On the downside, the 25,800-25,850 zone will act as a crucial support area for the index.

The Nifty is still trading above its critical 21-day EMA (Exponential Moving Average), and the bullish crossover in the daily RSI indicates short-term positivity. However, to maintain the upward trajectory, a decisive break above 26,000 is essential. Otherwise, the index is likely to remain range-bound between 25,800 and 26,000 in the near term.

Sectoral Performance:

• Top Gainers:

  • Metals: The Metal Index surged by 3%, with stocks like Tata Steel and Hindalco Industries leading the gains.
  • Oil & Gas: Up by 0.6%, supported by gains in major energy companies.
  • Power: The Power Index rose by 1.4%, with Power Grid Corp among the top contributors.

• Top Losers:

  • PSU Banks: The PSU Banking sector was the worst performer, down by 0.5-1%.
  • FMCG: Marginally down as well, weighed by stocks like HUL.
  • Telecom: Also saw a decline of 0.5-1% during the session.

Top Gainers & Losers:

• Biggest Nifty Gainers:

  1. Tata Steel
  2. Hindalco Industries
  3. Power Grid Corp
  4. Tech Mahindra
  5. Adani Enterprises

• Biggest Nifty Losers:

  1. SBI Life Insurance
  2. HUL (Hindustan Unilever)
  3. Grasim Industries
  4. UltraTech Cement
  5. Shriram Finance

Broader Market Performance:

• Midcap Index: Outperformed the frontline index, showing resilience amidst volatility.
• Smallcap Index: Ended on a flat note, signaling weakness in smaller stocks compared to their midcap counterparts.

Outlook:

The short-term sentiment remains positive for Nifty, but the market appears to be taking a breather after a three-day rally. For the rally to continue, it is crucial for Nifty to break decisively above 26,000. Until that happens, expect range-bound movement within the 25,800-26,000 range.

The broader market performance also reflects a mixed sentiment, with Midcaps showing strength while Smallcaps remain under pressure. Investors should continue to monitor the 26,000 level closely for further direction, with Metals, IT, and Power sectors looking promising for the next sessions.

NIFTY OUTLOOK & TRADING TIPS FOR 24 SEP 2024

Overview:

Indian equity indices extended their gains for the third consecutive session, with the Nifty crossing the 25,900 mark, driven by optimism and a positive bias throughout the day. The Sensex rose by 384 points (0.45%) to close at 84,928, while the Nifty gained 148 points (0.57%), ending at a record level of 25,939.

Key Market Movements:

• Nifty: The index opened with a gap-up and traded positively, rising toward the upper end of a rising channel in the 26,000-26,100 zone. While the momentum indicators on daily and hourly charts indicate caution due to divergence, the uptrend remains intact as long as there is no major price weakness. Traders are advised to use a trailing stop-loss at 25,700.
• Bank Nifty: Continuing its bullish trend, Bank Nifty is approaching the 55,000 mark, with pullbacks being seen as buying opportunities. The support zone is now between 53,350-53,500 as per the principle of role reversal.
• Midcaps and Smallcaps: Broader markets outperformed, with midcaps gaining 0.84% and smallcaps surging by over 1%, indicating renewed interest from market participants.

Sector Performance:

• PSU Banks and Realty: These were the top-performing sectors, with the PSU Bank index rising more than 3% and the Realty index advancing by over 2%.
• Other Gainers: Sectors such as auto, energy, FMCG, metal, pharma, and media all saw gains ranging from 0.5% to 1%.
• IT Sector: The Information Technology sector, however, lagged, shedding 0.5% during the session.

Top Gainers:

• M&M
• ONGC
• Bajaj Auto
• SBI Life Insurance
• Hero MotoCorp

Top Losers:

• Eicher Motors
• Divis Labs
• ICICI Bank
• Tech Mahindra
• IndusInd Bank

Market Sentiment:

The euphoria following the recent Federal Reserve rate cut lifted domestic markets, supported by benign input costs and expectations of a shift in the RBI’s stance. Additionally, inflows from Foreign Institutional Investors (FII) added to the bullish sentiment, offsetting concerns from moderating PMI data.

Technical Outlook:

• The Nifty's psychological resistance lies at 26,000, which is expected to be a key hurdle for further upside.
• On the downside, 25,800-25,850 serves as a strong support zone, suggesting that any profit-taking correction could find buyers in this range.
• For Bank Nifty, the immediate support rests in the 53,350-53,500 area, with 55,000 acting as the next upside target.

Market Breadth:

• Advances: 2,274 shares
• Declines: 1,661 shares
• Unchanged: 118 shares

Conclusion:

The Indian stock market remained in a firm uptrend, fueled by positive global cues and strong sectoral performances, particularly in PSU Banks and Realty. The market sentiment remains optimistic, though short-term caution is advised as the indices approach critical resistance levels. Investors are encouraged to maintain a trailing stop-loss to protect profits, while traders can use intraday dips as opportunities for accumulation, especially in leading sectors.

NIFTY OUTLOOK FOR 23 SEPTEMBER 2024

Key Indices Performance:

• Sensex: Up 1,359 points (+1.63%) to close at 84,544.
• Nifty: Up 375 points (+1.48%) to close at 25,791

The Indian equity markets ended on a strong note on September 20, driven by global optimism and positive domestic sentiment. Nifty breached crucial resistance levels, marking a close near 25,800, while Sensex touched new heights above 84,500.

Market Overview: Nifty opened on a positive note, experiencing high volatility throughout the trading session but managing to hold key support levels. Nifty’s sharp rally in the last few hours pushed it to close near its upper range. On the daily chart, the index remains within a rising channel, with a short-term target of 26,000 in sight.

Bank Nifty also achieved a milestone, breaking past its previous all-time high of 53,350, closing the session near 53,800. The index is showing signs of strength and is now targeting the 55,000 level in the short term. Any intraday dips in Bank Nifty are expected to be buying opportunities.

Sectoral Performance: All sectoral indices ended in the green, led by strong performances from:

• Auto: (+3%)
• Banking and Financials: (+2-3%)
• Realty: (+2%)
• Metals: (+1-2%)
• Capital Goods, FMCG, Healthcare: (+1-2%)

Sectors like auto and finance showed robust growth, likely benefiting from the Fed’s 50bps rate cut, which is expected to spur global liquidity and boost rate-sensitive sectors. Defensive sectors like FMCG also gained, driven by improving demand and lower input costs.

Top Gainers:

1. M&M
2. ICICI Bank
3. JSW Steel
4. Bharti Airtel
5. L&T

Top Losers:

1. Grasim Industries
2. SBI
3. IndusInd Bank
4. TCS
5. Bajaj Finance

Broader Market Performance:

• BSE Midcap Index: +1%
• BSE Smallcap Index: +1%

Broader indices participated in the rally, with both midcap and smallcap stocks rising by 1%. The market breadth was positive, with 2,346 stocks advancing, 1,434 declining, and 103 remaining unchanged.

Technical Overview: Nifty’s breakout above 25,550 resistance signals a strong bullish trend, with next resistance at 26,000. The short-term trend remains highly positive, with an expected consolidation or breather around 25,650. The market formed a decisive long bull candle on the daily chart, confirming the breakout from the previous range.

• Immediate Support Levels: 25,500 - 25,450
• Immediate Resistance Levels: 26,000, followed by 26,250 (as per Fibonacci extension).

Outlook: The market continues to ride the global wave, buoyed by accommodative monetary policies and strong economic cues. Sectors such as banking, financials, auto, and realty remain attractive for long positions. Despite intraday volatility, the overall trend appears to be positive, with more upside potential expected in the short term.

Conclusion: The Indian equity markets showed impressive strength despite volatile trading conditions, with key indices hitting new highs. Investors should continue to focus on index heavyweights and large midcaps for long positions, while keeping an eye on global cues, particularly from the US, which will continue to influence market direction.

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Recommendations:

• Use pullbacks in Bank Nifty and Auto sectors for accumulation.
• Maintain long positions in FMCG and financial stocks, particularly in top-performing companies.
• Short-term target for Nifty remains 26,000, with support at 25,500.

NIFTY OUTLOOK & OPTION TRADING TIPS FOR 20 SEP 2024

The Indian equity market witnessed a volatile session on September 19, 2024, with the benchmark indices closing on a strong note. The Nifty ended the day at 25,415, up by 38 points, while the Sensex gained 236 points to settle at 83184. The rally was led by sectors such as banking, FMCG, and realty, with heavyweight stocks showing strength.

Key Market Highlights:

1. Nifty Performance:

   • The Nifty formed a Shooting Star pattern on the hourly chart, indicating a potential early sign of bearish reversal. Despite opening with a gap-up driven by positive global cues, the Nifty failed to close above the rising trendline resistance.
   • Support levels: 25,350 and 25,100-25,000 zone. If the Nifty breaks below these levels, further correction towards the 25,100-25,000 region is possible.
   • Resistance levels: 25,550-25,600 range. A convincing move above this level will indicate a bullish trend.

2. Sector Performance:

   • FMCG led the pack, with banking and realty sectors also posting strong gains.
   • On the downside, sectors like media, metals, telecom, PSU banks, and oil & gas experienced pressure, with some stocks shedding up to 3.5%.
   • The BSE Midcap index fell by 0.4%, and the Smallcap index dropped by 1%, underperforming the broader market.

3. Global Impact:

   • Indian markets reacted to the US Federal Reserve’s aggressive 50 bps rate cut announcement overnight, sparking a rally in early trades. However, profit-taking in sectors such as telecom, metals, and oil & gas reversed some of the gains.
   • With the Fed's policy behind us, investor attention will now shift to the RBI’s monetary policy next month, where another rate cut may be expected to support the domestic economy.

4. Stock Movers:

   • Top Gainers: NTPC, Nestle India, Titan Company, Kotak Mahindra Bank, and Tata Consumer Products were among the key stocks leading the market rally.
   • Top Losers: BPCL, Coal India, ONGC, Adani Ports, and Shriram Finance faced selling pressure and ended the day in the red.

Technical Outlook:

• The Shooting Star candlestick pattern at record levels, coupled with potential bearish divergence in the RSI, suggests a likely consolidation or a reversal in the coming sessions. The Nifty’s consolidation range is expected to be between 25,300-25,500, and the next directional move will be determined by a break above or below this range.

Market Sentiment:

• The sentiment remains cautious, with traders advised to take a balanced approach by maintaining positions on both sides. A focus on index heavyweights like banking and FMCG sectors is recommended, as these sectors are demonstrating relative strength.

Conclusion:

• The Indian equity market is currently in a consolidation phase after a record high rally. Strong support is seen at the 25,100-25,200 level, and a decisive breakout or breakdown will determine the future market direction.
• Market participants should monitor the upcoming RBI monetary policy for cues on further rate cuts, which could provide a boost to sectors like banking and realty. Profit booking in midcap and smallcap stocks, which are trading at premium valuations, may continue in the short term.

NIFTY OUTLOOK & OPTION TRADING TIPS FOR 17 SEP 2024

Market Overview: Indian equity indices closed marginally higher on September 16, 2024. The Nifty ended at 25,383, up by 27 points (0.11%), while the Sensex closed at 82,988, rising by 97 points (0.12%). Despite a positive opening, the broader market witnessed lackluster trading, oscillating in a narrow range throughout the session. While most sectors saw buying activity, the FMCG sector faced profit booking, and the Media index emerged as the top gainer, rallying over 1%.

Key Highlights:

• Nifty Movement: The Nifty traded within the 25,350 to 25,440 range.
• Sensex Movement: The Sensex traded between 82,850 to 83,100.
• Sectors Performance: Media, banking, and metals posted gains, whereas FMCG and IT experienced slight declines.
• Technical Outlook: The formation of a small bearish candle on daily charts indicates indecisiveness between bulls and bears. The larger market texture remains bullish, but traders should expect near-term range-bound activity.

Key Support & Resistance Levels:

• Support Levels: For Nifty, key support is at 25,350 and 25,300, while Sensex support lies between 82,900-82,700.
• Resistance Levels: The key resistance for Nifty is at 25,500-25,575, and for Sensex, it's between 83,300-83,600.

Market Sentiment:

• A breach below 25,300 on the Nifty and 82,700 on the Sensex could change market sentiment, triggering profit-booking and exit from long positions.
• Overall market breadth leaned slightly positive, supported by selective buying in midcap and smallcap segments.

Sectoral Insights:

• Gainers: Banking, financials, realty, metals, and IT sectors showed strength. The Media index led sectoral gains with a 1% rise.
• Laggards: FMCG stocks faced intraday profit-booking and ended slightly in the red. IT also showed minor weakness.

Strategy for Traders:

• Buy on Dips: Despite the range-bound movement, the ongoing time-wise correction is seen as healthy, and traders are advised to continue with a "buy on dips" strategy. The larger bullish structure of the market favors gradual accumulation of stocks during corrective phases.
• Focus Areas: Traders should focus on sectors with relative strength, particularly banking, financials, realty, metals, and IT. Accumulating stocks showing strong relative performance in these sectors is recommended.

Outlook: With the larger trend still bullish, the market is expected to consolidate in the near term, providing opportunities for selective accumulation. Caution is advised near resistance levels, and traders should remain vigilant of any downside breach below key support levels.

Indian Stock Market Report – Friday 13 Sep Recap

Indian markets ended Friday’s session slightly lower as investors booked profits following Thursday’s record highs. Both key indices, Nifty 50 and S&P BSE Sensex, touched their all-time highs during the session but struggled to hold those levels due to profit-booking and sectoral weakness.

Key Indices Performance:

• Nifty 50: Closed at 25,356 points, down by 0.13%. Despite this, 20 out of 50 stocks finished in positive territory. The index recorded a weekly gain of 2.03%, marking its best performance since late June.
• S&P BSE Sensex: Slipped 0.09%, closing at 82,890 points. Over the week, the Sensex rose by 2.10%, driven by strong buying interest across sectors.

Sectoral Overview:

• Gainers:

  • Nifty Realty: Up 1.75%, leading the sectoral indices.
  • Nifty Media: Gained 1.74%.
  • Nifty PSU Bank: Rose by 1.25%.
  • Nifty IT: Advanced by 1%, reaching a fresh all-time high. Wipro led the index with a 3.9% rise, closing at ₹550 per share. Other IT stocks such as MphasiS, Coforge, L&T Technology Services, and Persistent Systems gained between 1% and 2%.

  Notably, five IT stocks – MphasiS, Coforge, Persistent Systems, HCL Technologies, and LTIMindtree – reached new 52-week highs. The Nifty IT index recorded a year-to-date gain of 22.19%, outperforming the Nifty 50’s 16.68% rise.

• Decliners:

  • Nifty Oil & Gas, Nifty FMCG, and Nifty Energy fell by over 0.6%, weighing on market sentiment.

Mid-Cap and Small-Cap Performance:

• Nifty Midcap 100: Continued its positive run, rising 0.66% to close at 60,189 points – the first time it crossed the 60,000 mark. IDBI Bank led the mid-cap index with a 7.9% increase. Oracle Financial Services Software and Bandhan Bank also saw strong gains.

  • Nifty Smallcap 100: Increased by 0.78%, closing at 19,505 points. In total, 69 of its constituents ended in positive territory.

Jewellery Stocks Rally:

Jewellery stocks saw sharp gains as global gold prices surged to new highs. Stocks like Tribhovandas Bhimji Zaveri (TBZ), Kalyan Jewellers, Senco Gold, Motisons Jewellers, PC Jeweller, and Thangamayil Jewellery rose between 4% and 20%. The sector was buoyed by several factors:

• Rising gold prices: Unhedged gold inventories benefited from inventory gains.
• Favourable macro conditions: A cut in customs duties and robust wedding demand have created a positive outlook for jewellery sales, with further support expected from the upcoming festive season.

Market Sentiment:

Despite domestic CPI inflation being within the RBI’s target band, rising food prices could prompt the central bank to maintain a cautious stance on interest rates. However, increased liquidity from Foreign Institutional Investors (FIIs) and a drop in US 10-year yields are boosting market sentiment, with expectations of a possible Federal Reserve rate cut further aiding the positive outlook for domestic equities.

Daily Market Report: Nifty 50 and Bank Nifty Performance Analysis

Nifty 50 Overview:

The Nifty 50 index has recently broken out of its consolidation phase, signaling a rise in market optimism. The index continues to sustain above the 21-day Exponential Moving Average (EMA), which is a positive sign for near-term momentum. The Relative Strength Index (RSI) on the daily chart shows a bullish crossover, further reinforcing positive sentiment.

Key Technical Indicators:

• Closing Price (September 11, 2024): 24,918.45 (-0.49%)
• 21-Day EMA: Nifty has been trading above this level, indicating bullish momentum.
• RSI: 53 (Daily), 68 (Monthly), signaling healthy momentum.
• Trend: Nifty closed above its recent consolidation high, indicating strength in the current trend.

Support and Resistance Levels:

• Resistance: 25,100 – 25,145
• Support: 24,735 – 24,880, with deeper support at 24,630
• Upside Potential: The rally is expected to continue toward the 25,470–25,500 range.

Market Sentiment and Global Cues: Tracking global market trends, Indian benchmark indices like Sensex and Nifty are expected to open higher on Thursday. Gift Nifty indicates a positive start, trading around the 25,085 level, offering a premium of nearly 140 points from the previous close of Nifty futures.

Nifty 50 - Bearish Candlestick Pattern:

Despite the positive sentiment, the Nifty 50 formed a bearish engulfing candlestick pattern, which could indicate a potential downturn. Wednesday’s session saw a decline of 122.65 points, with the index closing at 24,918.45. The index found stiff resistance at the 25,100 level, witnessing selling pressure in the second half of the trading session.

Short-Term View: The trend remains range-bound to weak in the short term, with pullbacks towards 25,050 – 25,100 levels offering opportunities for traders to exit long positions. Further selling pressure is anticipated if the index dips below key support levels.

• Support Levels: 24,880 – 24,750
• Resistance Levels: 25,020 – 25,145

Bank Nifty Overview:

Bank Nifty continues to face selling pressure after failing to breach its 50-day moving average. The index ended Wednesday’s session 262.30 points lower at 51,010.00, or 0.51% down for the day.

Key Technical Indicators:

• Closing Price (September 11, 2024): 51,010.00 (-0.51%)
• 50-Day Moving Average: Acts as a strong resistance for the Bank Nifty index.

Support and Resistance Levels:

• Resistance: 51,400 – 51,500
• Support: 50,850 – 50,640

A close above the 51,500 level could trigger a short covering move, with an upward target of 52,000 – 52,400. On the downside, dips toward 50,850 – 50,640 can be used to initiate fresh long positions.

Open Interest (OI) Data:

• Call OI (Resistance): Highest OI observed at 25,100 and 25,200 strike prices.
• Put OI (Support): Highest OI observed at the 24,700 strike price.

Conclusion:

While Nifty 50 has broken out of its consolidation phase and maintained a bullish sentiment, caution is advised due to the bearish candlestick pattern that formed in Wednesday’s session. A pullback towards key support levels could provide entry points for fresh long positions, while resistance at 25,100 remains significant.

Similarly, Bank Nifty’s performance indicates resistance at 51,500, with short-term dips offering fresh opportunities for long positions. Both indices are influenced by global market trends and Gift Nifty's performance, suggesting a positive start to Thursday’s session.

NIFTY OUTLOOK FOR TOMORROW 11 SEP 2024

Overview

Indian equity markets ended on a strong note, with both Nifty and Sensex closing higher. Nifty crossed the 25,000 mark, finishing at 25,041, up 104 points (0.42%), while the Sensex gained 361 points to close at 81921.

• Nifty: +104 points (0.42%) to 25,041.
• Sensex: +361 points (0.44%) to 81,921.

The positive market sentiment reflects investor optimism despite global recessionary concerns, buoyed by India's growth prospects and sliding crude oil prices.

Key Market Observations:

• Nifty: Witnessed recovery from the support cluster at 24,800 – 24,850. The resistance lies in the zone of 25,100 – 25,150, where the 61.82% Fibonacci retracement level is placed. Divergent signals from daily and hourly momentum indicators suggest near-term consolidation within the range of 24,800 – 25,200.
• Bank Nifty: Continued its pullback, facing resistance around 51,400 – 51,500. The support zone is located at 50,800 – 50,900.

Candle Pattern Analysis:

A small positive candle was formed on the daily chart with minor upper and lower shadows. This pattern resembles a doji, although not a classical one, indicating a cautious stance for bulls at this point. A decisive move above 25,200 could open the possibility of new all-time highs, but immediate support rests at 24,900.

Sector Performance:

• Telecom and Media: Top performers, each gaining 2%.
• IT, Capital Goods, Healthcare, and Power: Registered gains of 1% each.
• Oil & Gas: The only sectoral index to end in the red.

Stock Movers:

• Gainers: Divis Labs, LTIMindtree, Bharti Airtel, Wipro, HCL Tech.
• Losers: HDFC Life, SBI Life Insurance, Bajaj Finserv, Bajaj Finance, Shriram Finance.

Market Dynamics:

• Volatility: The market exhibited volatility, with a knee-jerk reaction at the opening followed by a sustainable upmove during the afternoon. However, selling pressure towards the end of the session caused the market to trim its gains.
• Support and Resistance: After early intraday correction, Nifty found support around 24,900/81,400, leading to a reversal and a subsequent rally. The market closed above the critical psychological mark of 25,000/81,800. Below 25,000, the index could retest the 24,900/81,500 levels. Further downside may drag it to 24,850/81,300.

Mid & Small Caps:

• Midcap: BSE Midcap index rose by 0.5%.
• Smallcap: BSE Smallcap index outperformed, gaining 1.5%, ending a streak of underperformance.

Technical Outlook:

• Nifty: Closed just above the key resistance level of 25,100. A strong close above this level is required for confirmation of further upside towards the 25,150-25,175 zone.
• Support: Immediate support is seen at 24,900. A breach could lead to a fall towards 24,850 – 24,750.
• RSI: On the daily chart, RSI shows a bearish crossover, signaling weakness. The sentiment remains weak unless the Nifty decisively closes above 25,100.

Conclusion:

The market completed one leg of the pullback rally, and the 25,000/81,800 level is now crucial for traders. A sustained move above this level could see the index bounce towards 25,150/82,200. On the downside, failure to hold above these levels might lead to retests of lower support zones.

Investors should remain cautious in the near term, as market momentum is expected to stay in a consolidation phase. A break above or below the key resistance and support levels will determine the next directional move.

NIFTY OUTLOOK FOR 10 SEP 2024

Market Overview: Indian markets rebounded on September 9, snapping a three-day losing streak. The benchmark indices closed higher, with the Nifty finishing at 24,936.40, gaining 84 points (0.34%), while the Sensex ended 375 points (0.46%) up at 81,559.

Despite a weak opening driven by negative global cues, the domestic market found support near its 20-day Simple Moving Average (SMA) and reversed, holding its positive momentum throughout the day. This recovery is attributed to strong performances in specific sectors, particularly FMCG, which surged by 2%, offsetting losses in Energy, Oil, and Gas sectors.

Technical Analysis:

• The formation of a small bullish candle on daily charts, coupled with reversal patterns on intraday charts, suggests the pullback may continue.
• Key support levels: 24,800 for Nifty and 81,000 for Sensex.
• Resistance levels: Nifty may face hurdles at 25,000–25,125, and the Sensex around 81,800–82,200. A breach below 24,800 could expose the market to downside risks, prompting traders to exit long positions.

Sectoral Performance:

• FMCG: The best-performing sector, rising by 2%, driven by gains in Hindustan Unilever (HUL), ITC, and Britannia.
• Banking: Positive momentum from ICICI Bank and Shriram Finance helped the Bank Nifty recover from intraday lows. Bank Nifty support is at 50,500-50,350, with resistance at 51,375-51,450.
• Energy, Oil & Gas: These sectors were the weakest performers, declining by over 1%.
• Mid and Smallcap: Both segments underperformed, with the midcap index down by 0.3% and the smallcap index shedding 0.6%.

Top Gainers:

1. HUL
2. Shriram Finance
3. ICICI Bank
4. ITC
5. Britannia Industries

Top Losers:

1. ONGC
2. Tech Mahindra
3. Hindalco Industries
4. NTPC
5. BPCL

Market Outlook: The bullish reversal pattern and the market’s ability to hold support near the 20-day SMA indicate that the pullback could extend further, with immediate targets of 25,000-25,125 on the Nifty. The support zone remains firm between 24,800–24,750, which will act as a critical threshold for maintaining the current trend. The upcoming data on US inflation and jobless claims will play a decisive role in shaping the global market sentiment.

Summary: Today's positive close and recovery suggest a potential continuation of the uptrend in the short term, with key sectors like FMCG and banking leading the charge. However, weakness in Energy, Oil & Gas, and global recession fears may create headwinds in the coming sessions.

Traders are advised to watch the key support and resistance levels closely, as market volatility remains high amidst global uncertainty.

NIFTY OUTLOOK FOR 26 AUG 2024

Overview:

The Indian benchmark indices ended flat in a volatile trading session on August 23. The market sentiment was cautious as investors awaited the speech of FED Chair Jerome Powell for signals on the future interest rate path.

• Sensex: Up 33.02 points or 0.04% to close at 81,086.21.
• Nifty: Up 11.70 points or 0.05% to close at 24,823.20.

Market Sentiment:

• The market showed mixed performance due to global uncertainties, leading to oscillations around a flat trajectory.
• The auto sector outperformed as it gears up for festive season demand with multiple launches.
• Most sectoral indices were in the red, indicating caution among investors.

Technical Analysis:

• Nifty opened flat and consolidated during the day, closing with minor gains of ~12 points.
• Nifty has closed positive for the seventh consecutive trading session, signaling a stretched upmove without a significant pullback.
• The hourly momentum indicator showed a negative crossover along with negative divergence, suggesting a possible intraday dip. Caution is advised for long positions.
• Nifty is nearing the 78.6% retracement mark at 24,830, which could restrict further upside. The overall trend remains sideways with a consolidation range between 24,200 and 25,000.

Bank Nifty:

• The Bank Nifty also experienced range-bound price action, closing marginally in the red.
• The index may resume its upmove after a few days of consolidation, with an expected upside towards 51,500 – 51,900 from a short-term perspective.
• Traders should maintain a stop loss at 50,400 for long positions.

Sector Performance:

• Top Gainers: Bajaj Auto, Coal India, Tata Motors, Sun Pharma, and Bharti Airtel.
• Top Losers: Wipro, ONGC, Divis Labs, LTIMindtree, and Infosys.
• BSE Midcap Index: Down 0.6%.
• Smallcap Index: Ended flat.
• Sectoral Performance:
  • Auto: Up 1%.
  • Metal, Realty, Media, PSU Bank, IT: Down 0.5% to 2.5%.

Outlook:

• On Monday, markets are likely to react to global cues post the US Fed speech.
• Traders are advised to maintain a positive outlook unless Nifty decisively breaks below 24,500.
• The banking sector remains key to the next directional move, while other sectors are currently balancing each other.
• Traders should avoid aggressive positions and focus on stock-specific strategies.

NIFTY OUTLOOK & FREE TRADING TIPS FOR 23 AUG 2024

Market Overview:

Indian benchmark indices concluded the trading session on a positive note, with the Nifty closing above 24,800. The Sensex gained 147 points, closing at 81053, while the Nifty was up by 41 points, closing at 24811.

Sector Performance:

• Top Gainers:

  • Consumer, Metal, and PSU Banks: These sectors saw significant buying interest, driving the market upwards.
  • Top Performing Stocks:
    • Grasim Industries
    • Tata Consumer Products
    • Tata Steel
    • Bharti Airtel
    • Apollo Hospitals

• Top Losers:

  • Selective IT and Energy Stocks: These sectors experienced intraday profit booking at higher levels, leading to marginal declines.
  • Underperforming Stocks:
    • Tata Motors
    • Dr Reddy's Labs
    • NTPC
    • Wipro
    • M&M

• Sectoral Indices Performance:

  • Power Index: Declined by 1%.
  • Pharma, Oil & Gas, Auto, IT: Ended marginally lower.
  • Bank, FMCG, Metal, Realty, Telecom: Gained between 0.5% and 1.4%.
  • BSE Midcap and Smallcap Indices: Both rose by 0.5%.

NIFTY OUTLOOK & FREE TRADING TIPS FOR 22 AUG 2024

Overview

Indian benchmark indices ended the trading session on a positive note amidst a volatile environment. The Sensex climbed 102 points, closing at 80,905, while the Nifty advanced 71 points to settle at 24,770. Despite the initial flat start, selective buying towards the final hour of trading helped push the indices to close near their day's highs.

Market Performance

• Nifty: The Nifty opened flat and traded within a narrow range for most of the session. However, a late surge in buying activity lifted the index by 71 points to close at 24,770.
• Sensex: The Sensex mirrored Nifty's movement, closing with a modest gain of 102 points.

Sectoral Indices

• Gainers:
  • FMCG: The FMCG sector outperformed, gaining over 1.3% as investors shifted towards defensive stocks.
  • Pharma: Pharma stocks also saw positive movement, rising 0.91%.
  • Metals: The metal sector posted decent gains of around 0.5%.
  • Telecom & Media: Both sectors registered gains between 0.5% and 1%.
• Losers:
  • Realty: The Realty index was the worst performer, dropping 1.31%.
  • Banking: The banking sector remained under pressure, dipping by 0.2%, limiting the upside for the broader market.

Top Performers

• Divis Labs: Leading the pack, Divis Labs saw significant buying interest.
• Titan Company: Also performed well, contributing to the day's gains.
• SBI Life Insurance, Cipla, Grasim Industries: Other notable gainers.

Lagging Stocks

• Tech Mahindra: Was among the top losers.
• UltraTech Cement, Tata Steel, Power Grid Corp, HDFC Bank: These stocks also saw profit-taking.

Midcap and Smallcap Performance

• Midcaps: The BSE midcap index rose by 0.4%, aligning with the broader market trend.
• Smallcaps: The smallcap index outperformed with a gain of nearly 1%.

Technical Analysis

• Nifty Levels:

  • Support: Immediate support for Nifty is observed at the 24,450-24,600 zone.
  • Resistance: Nifty faces resistance at 24,850 and could advance to the 25,000 level. The next resistance is anticipated at 24,960, with potential movement towards 25,100 in the short term.
  • Momentum: A negative divergence is developing on the momentum indicator, suggesting that while the trend remains positive, the upward movement might slow down with possible intraday pullbacks.

• Bank Nifty:

  • Support: The Bank Nifty found crucial support at the 50,350-50,300 zone.
  • Upside Target: As long as this support holds, the index could rally towards the 51,000-51,500 levels. A stop loss of 50,300 is recommended for long positions.

Global Cues

Global markets maintained a cautious stance ahead of the FOMC minutes release. The expectation of a potential rate cut in the US remains high, driven by declining inflation and moderated economic growth. This global sentiment is likely to influence Indian markets, making it essential for participants to monitor developments in the US closely.

Conclusion

The Indian market continues its gradual ascent, supported by sectoral rotation and strong domestic institutional investor (DII) flows. While defensive sectors like FMCG and pharma lead the rally, caution prevails due to profit-taking in banking stocks. The Nifty is poised to challenge higher resistance levels, with a short-term target of 25,000+ on the horizon. However, traders should be prepared for potential pullbacks and closely watch key support levels.

This report provides a comprehensive outlook on the market trends, sectoral performances, and technical insights, helping participants make informed decisions.