In Monday’s trading session, it seemed that the day of expiry had arrived, but it did not happen. Prior to Tuesday’s expiry, the Nifty saw a lot of ups and downs. However, the index neither crossed the high level of Friday nor did the intraad of Friday last above 24,629. The Nifty saw a decline of 170 points from the highest level of the day. A minor recovery of 30 points from Intrade Low helped the Nifty to close above the 24,600 level.
Tiger coming to the market
The market is currently cautious. There are many triggers in the second part of this week. Among them, RBI’s monetary policy and auto sales reports will be important, which will come on Wednesday. Companies will also start releasing quarterly results. TCS will update it on 9 October. The update given by HUL on Friday is also expected to affect the FMCG sector. HUl’s shares recovered from Intrade Low on Monday, but remained weak, while there were positive signs to rationalize GST.
Trading setup for Nifty
Monday’s 24,604 low level will be the first security line for Nifty at a monthly end on Tuesday. Also, intraday high level of 24,791 will remain a significant level at the top. Analysts believe that any recovery should be used as an opportunity to sell until the Nifty is closed above 25,200.
Look at the Nifty Bank. Due to this index, the Nifty came below the high level of the day on Monday. It saw a slight rise at the end of the business. The level of 54,500 is important at the top and it can accelerate when it goes above. Everyone’s eyes will also be on the banking sector updates, whose reporting will start from this week.
Expert opinion on Nifty
Nagraj Shetty of HDFC Securities said, ‘Nifty is currently close to the major support area around 24,500–24,400, which coincides with earlier swing low and 200-DEMA levels. In the next few sessions, the Nifty can touch this level. However, if the Nifty crosses a resistance level of 24,800–24,900 permanently and goes up permanently, it can confirm a lower-level reversal pattern in the short term.
Ajit Mishra of Railways Broking says that due to oversold position, some consolidation can be seen in Nifty 50. The area of 24,400–24,500 has strong support, while the resistance is between 24,800–25,000. He advised that while investing in shares, proceed to field -wise trends and avoid highly aggressive positions.
