Market Outlook for 05 April 2024

Market Outlook for 05 April 2024
Market Outlook for 05 April 2024

by Ruchit Jain Last Updated: Apr 05, 2024 - 10:28 am 370 Views
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Nifty started the weekly expiry with a gap up opening around 22600 mark. However, there was high intraday volatility seen as the index corrected initially from 22600 to 22300 mark, but it again recovered from the lows to end the day above 22500. The Bank Nifty index was relatively stable as it traded with a positive bias throughout the day and reclaimed the 48000 mark at close.

Nifty Today:

Nifty witnessed higher volatility on the weekly expiry day but it managed to post a record high close led by the banking and IT heavyweights. The buying interest on intraday dip indicates that the broader uptrend remains intact, but the index has formed a ‘Hanging Man’ candle stick pattern on daily chart and hence this low of 22300 will now be seen as a crucial support for the short term. FIIs had formed short positions in the index futures segment on the previous day which remains a concern, but as the supports on the index are intact one should be vigilant on the mentioned support and keep strict stop loss on long positions below this support. On the higher side, since the index has registered new highs, the retracement levels of the recent corrective phase indicates a probable target around 22700-22750. Traders are advised to continue to trade with a positive bias till the index trades above 22300.

                                          New registers new record high amidst high intraday volatility 

RBI will be announcing their decision of monetary policy outcome on Friday. Banking stocks could see some intraday volatility due to the same. However, the broader trend for the Bank index seems positive with short term support base now shifted to 47500-47250. 

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  NIFTY Levels SENSEX Levels BANKNIFTY Levels FINNIFTY Levels
Support 1 22300 73650 47760 21240
Support 2 22160 73050 47470 21100
Resistance 1 22650 74650 48300 21480
Resistance 2 22750 75000 48550 21590

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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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