NIFTY TRADING STRATEGY FOR COMING WEEK 8 APRIL TO 12 APRIL 2024

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Overall Market Performance:

• The market ended flat on April 5 after the RBI's Monetary Policy Committee decided to keep key rates unchanged.
• Sensex closed at 74248, up by 20 points (0.03%), while Nifty closed at 22,513, down by 1 point.
• Midcap and smallcap indices continued their upward trajectory, gaining between 0.5% to 0.8%.
• Sectoral performance was mixed, with realty, FMCG, and banking sectors being among the top performers, while IT and energy sectors traded dull.

Key Observations:

• Nifty exhibited consolidation after a sharp run-up, signaling a healthy market sentiment.
• Bank Nifty outperformed and is expected to continue its momentum, with immediate hurdles at 48,636 and potential to rally till 49,300.
• Global cues remained weak, with concerns over rising oil prices and tensions in the Middle East dampening sentiment.
• RBI's steady interest rates and positive comments on the Indian economy supported the market, particularly banking stocks.

Technical Analysis:

• Nifty's consolidation is likely to break out on the upside, with expected levels around 22,700.
• Crucial support for Nifty is placed at 22,400 – 22,350.
• Bank Nifty's momentum is expected to persist, with support zones at 47,700 – 47,500 and crucial support at 48,000.

Market Sentiment:

• The market sentiment remained cautious, with investors exercising selective buying, particularly in frontline banking stocks.
• Continued traction in midcap and smallcap segments supported overall sentiment.

Rupee and Global Factors:

• Indian rupee closed at 83.30 against the dollar, gaining 0.14 from the previous close, supported by positive comments from the RBI Governor.
• Global sentiment was affected by rising oil prices and geopolitical tensions, with investors awaiting US non-farm payroll and unemployment data for clarity on the Federal Reserve's future rate path.

Conclusion and Trading Strategy:

• Despite a muted session, the market outlook remains positive, with midcap and smallcap segments showing resilience.
• Traders should maintain a positive bias as long as Nifty holds above 22,200 level.
• Stock selection is crucial amidst mixed sectoral trends; traders should exercise caution and focus on quality midcap and smallcap names.
• Bank Nifty is anticipated to maintain its momentum, with potential for new all-time highs next week.
• Technical levels provide guidance for entry and exit points, with support and resistance zones identified for Nifty and Bank Nifty.

Disclaimer: The above analysis is for informational purposes only and should not be construed as investment advice. Traders are advised to conduct thorough research and consult with financial professionals before making any investment decisions.