Market Outlook for 27 September 2023

Our markets traded within a narrow range in Tuesday’s session where neither Nifty broke its previous day’s high nor its previous day’s low. It ended the day almost flat above 19650.

Nifty Today:

Nifty took support around 19600 in Monday’s session which was the 61.8 percent retracement level of the recent upmove. The Bank Nifty index too recovered from the support of its 89 DEMA level. However, we did not see any significant movement in Tuesday’s session as the index traded within a very narrow range throughout the day. Hence, the low of 19600 continues to be a crucial support for the coming session as well and only if we break this support, then further sell-off would be seen. FII’s have been selling in the cash segment and they have formed short positions in the index futures segment too and they now have net short positions in the index futures. However, much of the selling in the cash segment has been absorbed by DIIs while the Client segment traders were buyers in the index futures segment. Thus, our markets have not been much impacted as compared to the global markets. However, from a trading perspective, one should be very stock specific and it needs to be seen whether the Nifty, Bank Nifty and the Midcap index manages to resume its uptrend from their respective supports or not. Below Monday’s low in all these indices, we can then see further sell-off and hence, one should keep strict stop losses on positions accordingly.

 Markets consolidated in a narrow range, 19600 make or break level    

Some of the FMCG names witnessed good buying momentum ahead of the expiry. Stocks such as Colpal and Marico are hinting at a continuation of the positive trend while the heavyweight HUL from this sector could form a support base here. One can look for opportunities in such stocks from a near term perspective.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: