stock market
Amid cautious attitude and conflicting global market indications, the key Indian stock market indices, the Sensex and Nifty 50, are probably going to open slightly higher on Monday. Investors will evaluate the changes in the relationship between China and India.
The Indian benchmark index is out to a somewhat good morning, according to Gift Nifty’s trends. The Gift Nifty was trading at a premium of around 35 points over the previous closing of the Nifty futures, at about 24,603 levels.
Friday saw the benchmark Nifty 50 close below the 24,500 mark, continuing the local equity market’s losing run for the third straight session.
The Nifty 50 closed 74.05 points, or 0.30%, lower at 24,426.85, while the Sensex fell 270.92 points, or 0.34%, to conclude at 79,809.65.
This week, September 5th is a crucial day for the stock market. The director of Wealthview Analytics, Harshubh Shah, stated that significant market volatility was possible on this day.
The direction of the market will also be influenced by the GST Council meeting, international market signals, US tariffs, foreign investor buying and selling, and technical reasons.
Let’s see what might occur in the market this week.
Zone of Support: 24,380, 24,331; 24,140; 23,875; 23,820; 23,320
Support is the point at which an index or stock is shielded from further declines. Because of increasing purchasing, prices don’t readily fall below these levels. At these levels, there may be buying possibilities.
Zone of Resistance: 24,460, 24,540, 24,650, 24,800, 25,001, and 25,080
Sensex Forecast
On the weekly charts, the Sensex has created a lower top formation and a long bearish candle, both of which are primarily negative.
“We believe that the market’s short-term prognosis is still poor, but only if the 79,700 barrier is broken might there be a new selloff. However, beyond 80,500, the pullback recovery can continue to 81,000 and 81,300, or the 20-day SMA (Simple Moving Average). The 200-day SMA or roughly 78,900 might be reached by the Sensex if it drops below 79,700, according to Amol Athawale, VP of technical research at Kotak Securities.
Nifty OI Information
Regarding derivatives, a high level of Nifty Call OI (Open Interest) between 24,600 and 24,500 is probably going to limit the upside, but Put OI at 24,400 might offer short-term support. According to Choice Broking, the index is trapped between important support and resistance zones, and the overall setup is still sideways to cautiously bearish.
Technical proficiency:
According to Osho Krishna, a senior analyst at Angel One, the technical outlook for the Nifty is now poor. The fact that the Nifty is trading below its 100-DEMA suggests that it is negative. It is close to 24,350, the most recent low.
The Nifty may drop to 24,150–24,100 (the 200-day Simple Moving Average) if this level is broken. There is resistance on the upside between 24,600 and 24,800.
