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.