Market Outlook for 21 September 2023

Post the mid-week holiday, Nifty started trading on a negative note owing to the weak global cues and the sell-off seen in the heavyweight HDFCBank which dragged the indices lower. Both Nifty as well as Bank nifty traded with a negative bias throughout the day and the index ended around 19900 with a loss of over a percent.

Nifty Today:

The weak global cues and the sell-off in HDFC Bank post the brokerage downgrades led to a gap down opening in the markets. The support of 20000 was broken in the opening hour itself and as the put writers had decent open positions there before the holiday; the writers looked to unwind their positions which led to further pressure in the index. Nifty has reacted negatively from its important hurdle of 2022 which was the 127 percent retracement of the recent correction. As of now, this downmove seems to be a corrective phase within an uptrend. The 20 DEMA support will be the important support to watch out for the index which is placed in the range of 19750-19800. On the flipside, 20000-20050 will be the intraday resistance zone on the weekly expiry day as per the open interest data.

Benchmark indices corrects led by selling in heavyweight HDFC Bank

Traders are advised to focus on stock specific opportunities for now. Whether the index breaks the 20 DEMA support or not needs to be seen and the next couple of sessions could give more clarity.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: