Market Outlook for 26 September 2023

Nifty started trading for the new week on a flat note and witnessed a continuation of the corrective mode in the first hour of trade. However, the index recovered from its support of 19600 and ended around the previous session’s close.

Nifty Today:

Our markets have been in a corrective phase since last one week mainly because of weak global cues and long unwinding by FIIs. The Nifty index has immediate support around 19600 which is the 61.8 percent of the recent upmove. The index precisely recovered from this support in Monday’s session and formed a ‘Doji’ candlestick pattern on the daily chart. Thus, 19600 will continue to be seen as the important support and if this remains intact then a pullback move could be seen ahead of the September series monthly expiry. In such a scenario, a pullback towards 19800 can be seen. On the flipside, in case 19600 is broken then we could see a continuation of the corrective phase towards 19500/19435.

Recovery seen from support of 19600, key support in midcap index intact

The Nifty Midcap index has once again managed to defend its 20 DEMA support which has not been breached since the month of April. The important support for this index is placed at 40000-39900 and only a breach below this should be seen as negative. 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: