Indian stock markets have started the month of October rapidly. On Tuesday, October 1, both Sensex and Nifty closed at the Intrade highest level. With this, the decline in the stock market for the last 8 days has stopped today. The Sensex closed at 80,983.31 with a gain of 715.69 points or 0.89 percent. On Thursday, the Nifty was seen rapidly before the Gandhi Jayanti and Dussehra holidays, which gave some relief to the stunners (buyers). After the market fluctuations and every fast breakdown, now traders are expecting the market to go up further.
Positive signal
It will also be a matter of pleasure for Nifty’s stunning that the series of lower levels and lower levels (lower levels, lower levels) have been broken for 9 consecutive days. The Nifty closed 30 points below the highest level of the day on Wednesday, but it is better than the continuous closure near the lowest level of the day.
FII status and RBI role
When the long position of foreign institutional investors (FIIs) was only 6% in the beginning, short coverings were scheduled to occur at some point. RBI Governor Sanjay Malhotra on Wednesday changed the situation by announcing several reforms in the banking sector in his policy and then. As a result, the Nifty Bank saw its best day in about four months. It closed above two of the three major resistance points and also moved the Nifty up. The Nifty Bank will not only play an important role in taking the Nifty beyond 25,000, but also in the recent 25,448 swing high.
Now pay attention to the banking sector
The banking sector will be monitored as commercial updates have started coming. The big banks will release their quarterly reports. Especially HDFC Bank, which is the largest private bank in India. HDFC reports can understand the trends of other private banks, as other banks like Axis, ICICI and Kotak share their commercial updates only during quarterly results.
Next level of Nifty
The high level of 24,867 on Wednesday will be the first challenging level for Nifty, followed by a level of 25,000. At the bottom, the lowest level of 24,587 of this week will become the first important support area. Although it is now slightly away, it will still be considered an important support area.
Many important levels are still yet to be crossed before the trend reversal is called. However, the Tejadis hope that the trend of ‘closure near the high level of day’ will continue till the next few sessions.
Way for Nifty Bank
Bank Nifty not only went above 55,000, but also closed above 55,300 levels. The next important level will be 55,700, after which the swing of 55,835 on September 18 will be high.
Liquidity and IPO challenge
The biggest challenge to go up for Nifty will be the availability of liquidity in the system. The two biggest IPOs of the year will open together next week. Tata Capital’s IPO of over 15,000 crores, LG Electronics India’s ₹ 11,607 crore IPO and Vwork India’s ₹ 3,000 crore IPO. In these three IPOs, there will be a competition to attract the attention of investors. It will be interesting to see how the market reacts in the biggest IPO of the year.
Foreign institutional investors (FIIs) continue selling
On 1 October, foreign institutional investors (FIIs) remained a pure vendor in the cash market, while domestic institutional investors (DIIs) remained a buyer. FII sold shares worth ₹ 1,605 crore, while domestic institutional investors bought shares worth ₹ 2,916 crore. Its net influence was revealed in the market as a net purchase of ₹ 1,311 crore.
Expert opinion on Nifty
Rajesh Bhosle of Angel One recommends traders to adopt a strategy of ‘shopping on fall’, as the Nifty is maintaining the necessary support levels at the bottom. He said, ‘upwards, the recent decline from 25,448 to 24,588 recent decline is important. 50% of the retracement is at 25,000 and 61.8% is at 25,100. Both these levels are acting as a direct resistance area with several major moving averages.
Resistance to 24,916 and 25,018
Vinay Rajani of HDFC Securities said, “The Nifty has retrieved the level above its 5-day EMA after 7 sessions. The Nifty has also broken the structure of the recession of the lower high and lower low on the daily time frame. According to Vinay, the resistance levels for Nifty are now visible at 24,916 and 25,018, which are made up of 38.2% of the full decline from 25,448 to 24,587 and 50% of the retracements. At the bottom, 24,731 can support the Nifty.
