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.