Support and Resistance in stock market today
Stock market: On the last trading day on 29th September, there was a rise in Bank Nifty and the buyers were successful in maintaining the support of 44200. However, a challenge was seen at the 20-day moving average located at 45000 and this level acted as a tough resistance. It looks like Bank Nifty is consolidating in a range. The upper end of this range is located at 45000 and the lower end at 44200.
Stock market: Indian markets had a strong start on the first day of the October series 29th September. The rise continued throughout the session except for the last 45 minutes of the trading session. In these last 45 minutes, slight profit booking was seen in Nifty. Due to this, Nifty closed down by more than 100 points from the day’s highest level of 19726. Nifty had closed last week at the level of 19638 with a fall of 0.18 percent. Now the question is how the market will behave in the week starting from 3rd October. Let us know the opinion of experts on this.
Stock market today: Experts analysis
Experts say that Nifty is getting support near its 50 day EMA for the last three consecutive trading sessions. Any bullish move above 19767 will confirm a trend reversal. Once this level is crossed, the market will rise further. Whereas if it goes below 19492, the decline in Nifty will increase.
Kunal Shah of LKP Securities says that on the last trading day i.e. 29th September, there was a rise in Bank Nifty and the buyers were successful in maintaining the support of 44200.
However, the 20-day moving average (20DMA) located at 45000 faced a challenge and the level acted as a tough resistance. It looks like Bank Nifty is consolidating in a range. The upper end of this range is situated at 45000 and the lower end at 44200. A decisive breakout on either side of this range will determine the direction of the index. The level of 44200 is very important for the short term, it will decide the direction of the market in the near term.
LKP Securities says that after a weak closing of August, Nifty has ended the month of September with gains. The recent selling pressure seems to be stopping around 50EMA. For a good rally in the short term, Nifty needs to close above 19750. A close above 19750 may take Nifty towards 20500-20700. At the same time, if Nifty goes below 19470 then it will fall further.There may be a decline.
Jatin Gedia of Sharekhan says that after opening with a rise on the last trading day, Nifty kept trading with a positive trend and finally closed with a gain of 114 points. If we look at the daily chart, we can see that there was no follow through selling in Nifty on the last trading day. In fact it closed above 19600 which is a good sign. The level of 19492 has now become the short term bottom for Nifty.
The positive divergence and cross over seen on the hourly time frame are also indicating that a pullback rally can be seen in Nifty now. Both price and momentum are indicating that Nifty may see a rise in the next few trading sessions. On the downside, support for Nifty is seen at 19500-19480 and on the upside, immediate resistance is seen at 19780-19840.
Giving his opinion on banking shares, Jatin said that a pullback was also seen in Bank Nifty on the last trading day. Due to which it managed to close around its 20 week moving average (44584). This is a positive sign. Jatin believes that the momentum in Bank Nifty seems to be weakening. This is evident from the positive divergences seen on the hourly time frame. We may also see a pullback in Nifty in the short term. In this pull back, it may be seen moving upwards towards 45000-45200.
Opinion of Vinod Nair of Geojit
Vinod Nair of Geojit Financial Services says that due to good GDP figures of Britain, there was a rise in the Indian market. However, the market is facing stiff resistance at upper levels due to liquidity crunch and lack of triggers to overcome the bears. The threat of rising domestic inflation may be averted with the news of a good monsoon in September. This may give the RBI the freedom to keep the increase in interest rates in its policy meet next week.
Stock Market today: Conclusion
In simple terms, right now, the stock market looks like it might go up in the next few days, and there’s strong support around 19500-19480. Bank Nifty went up recently, and it managed to stay above 44200, but it had a hard time moving past 45000, which is like a wall. This means it’s kind of stuck between 44200 and 45000 for now, not going up or down much.
Indian markets had a strong start in the October series but witnessed slight profit booking in Nifty, resulting in a drop of over 100 points from the day’s peak of 19726. Expert opinions are divided, with some suggesting that a bullish move above 19767 could trigger a trend reversal, while others warn of increased decline if Nifty falls below 19492.
Positive signs exist despite the uncertainty, such as Nifty’s strength above 19600 and probable pullback rallies. Resistance is found at 19780–19840, with support at 19500–19480. Bank Nifty, which represents the banking industry, had a retracement and closed around the 20-week moving average of 44584, indicating probable upward momentum. The RBI’s future interest rate choices may be influenced by a successful monsoon in September, but market resistance, liquidity restrictions, and inflation worries persist. In current volatile market conditions, investors must proceed cautiously.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.