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This week, the stock market may show a strong Intrade Momentum on 3 October. According to Harshubh Shah, director of wealth analytics, this momentum will be especially beneficial for scallers.
Apart from this, the RBI’s Monetary Policy Committee meeting, the signs of the global market, the purchase and sale of foreign investors to the technical factors will decide the market moves.
Let us understand what can happen in the market this week…
Support Zone: 24,538 / 24,482 / 24,458 / 24,382 / 24,331 / 24,142 / 23,875
Support means the level where the share or index falls from falling down. The price does not go down easily due to increasing shopping here. You can get a chance to shop at these levels.
Resistance Zone: 24,805 / 24,856 / 24,980 / 25,035 / 25,145 / 25,322 / 25,434
Resistance, ie, the level where the stock or index is hindered. This happens due to increasing selling. If the Nifty Registration crosses the zone, a new fast may occur.
Trading Outlook: What to do traders?
- Look at 3 October: The report advises to monitor October 3. On this day, there may be a sharp momentum in Intrade. This will prove beneficial for scallers.
- Support-resistance attention: You can consider short trades below the support level mentioned. At the same time, crossing the resistance level may have a chance to take a long position.
- Use of Time Cluster: Day traders can catch the market movement using these time clusters. These time may indicate the onset of market boom or decline.
- Caution is necessary: The ups and downs in the market can be faster, so after taking any trade, use risk management and stop-loss.
Market direction
According to market experts, the market may stay light bearish (0.5–1%) on Monday, but RSI is expected to bounce due to oversold.
If the market opens below 24,700, the Nifty can test 24,500-24,600. There is a possibility of a relief rally when going above 24,800.
Talking about the whole week, the market is likely to be a bearish. Market experts feel that the Nifty can go down to 24,200-24,000.
The market has an upside limited due to the holiday on 2 October. However, if there is any positive news related to the trade deal with the US, it can cause a boom in the market.
Now 5 factors who can decide the direction of the market…
1. Technical Analysis: According to Railor’s Broking Senior Vice President – Research Ajit Mishra, the frequent weakness in large stocks in the last two sessions has accelerated the decline of the index. Now the Nifty is moving towards an important support level around 24,400.
Nagraj Shetty, Senior Technical Research Analyst of HDFC Securities, said- A long beer candle was built on the daily chart on Friday. It indicates more weakness in the short term.
A long beer candle has been made after three weeks in the Nifty on the weekly chart. The Nifty may slip towards the next important support of 24,400-24,300 by next week.
2. RBI Monetary Policy Committee: A three -day meeting on RBI’s interest rates will start from Monday. Its decision will come on Wednesday, October 1. The repo rate of the Central Bank is expected to be kept at 5.5%.
3. The condition of the US market: American market moves affect other markets. It may also show some effect on Indian markets.
- Dow Jones climbed 300 points or 0.65% to close at 46,247 on Friday.
- The S&P 500 index closed up 39 points or 0.59% to close at 6,643.
- Nasdaq Composite rose 99 points or 0.44% to 22,484.
4. FII / DII Action: This week FII sold Rs 19,570 crore, while DII bought equity worth Rs 16,200 crore.
On Friday, FII sold shares worth Rs 5,687 crore. DIIS made a purchase of Rs 5,843 crore. FII has sold equity worth Rs 1.48 lakh crore so far on a year-on-year basis.
5. Indo-America Trade Deal: India said on Friday that during the visit to Washington this week, its officers had “creative” conversations with American counterparts.
The two countries soon agreed to continue negotiations to finalize mutually beneficial trade agreement.
A delegation led by Commerce and Industry Minister Piyush Goyal visited the US from 22 to 24 September, where he held meetings with American business representative Jemisson Greer and Ambassador-Name Sergio Gore. Investors will keep an eye on this development.
Sensex drops 2.66% and Nifty 2.65%
Talking about the whole week, the Sensex drops 2.66% and the Nifty 2.65%. On Friday, the Sensex fell 733 points or 0.90% to close at 80,426 levels.
The Nifty also closed at 24,654 below 236 points or 0.95%. The fall came due to new tariffs on pharma and frequent selling of foreign investors.
Disclaimer: This article is only for information and learning. The above opinion and advice are of individual analysts or broking companies, not Dainik Bhaskar. We advise investors to consult certified experts before taking any investment decision.
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