Week Ending September 27th 2024

Dear patrons; it has been a bull ride for the markets over the last few weeks and it is only gaining strength with passing time. Benchmark indices were on a roll for most of the week, clocking new lifetime high levels for most of the week.

In a slow news week bulls were at their ferocious best taking Nifty beyond 26000 mostly on the back of short covering owing to September series derivatives expiry. Surge in markets can also be attributed to incessant flow of money from domestic investors. Liquidity is no problem for the Indian markets as global bankers are in the process of reducing interest rates, thereby infusing a lot of liquidity in the financial system.

Global markets were also pretty buoyant and made new lifetime highs all over. Reduction in interest rates have sparked new optimism for growth across the globe resulting in strong bull runs.

Domestically, everything looks calm and optimistic on the economic front. As the festive season sets on there should be more spending by consumers leading to record tax collection for the government and record sells for consumer durables, FMCG and two-wheeler makers. Global expenditure on IT should also increase with reducing interest rates.

Let us take a look at what happened on technical front on indices and try to figure out what lies in store.

As stated in the previous blog Nifty staged a superb rally gaining more than 1.5% over the week. Nothing is amiss on charts as far as the uptrend is concerned. Markets may consolidate in the coming weeks with range bound moves within a small band. It has support around 25900 and resistance around 26400-26500, Almost all parameters on the charts are indicating some more upside.

After a bit of consolidation BankNifty also surged over last couple of weeks to post another lifetime high. It witnessed some profit booking on Friday. Stage looks set for BankNifty for yet another lifetime high. PSU banks are looking promising for the coming weeks.

In a truncated week market may behave erratically and with higher volatility. Traders should adhere to strict stop losses. Booking small profits and reentering the trade may remain flavor of the week.

Investors should look to accumulated good quality stocks and stay invested.

You never know what kind of setup market will present to you, your objective should be to find opportunity where risk reward ratio is best. ~ Jaymin Shah

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.