Market Outlook for 6 October 2023

Market Outlook 06 October 2023

by Ruchit Jain Last Updated: Oct 06, 2023 - 03:41 pm 666 Views
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Post the recovery from the intraday lows in Wednesday’s session, our markets started the day with a gap up on Thursday and then consolidated in a narrow range throughout the day. It ended the weekly expiry day around 19550, posting gains of over half a percent.

Nifty Today:

As the global markets witnessed some recovery, our markets too started the day on a positive note. The consecutive gaps in last couple of trading sessions has led to formation of an ‘Island’ reversal pattern on the daily chart. This is a reversal pattern which has been formed post a corrective phase which is a positive sign. However, the follow up move in next trading session needs to be seen to confirm this to be a strong support base. This is mainly because we have not yet seen any significant change in the data as the majority of short positions recently formed by the FIIs are still intact and there are no trend reversal signs yet. Also, Nifty needs to surpass its immediate resistance zone of 19660-19760 which could be a herculean task. For the above mentioned reversal pattern, 19450 will be the immediate support which if breached, then it would reduce its significance. Hence, traders should be watchful on the above mentioned levels which would be crucial to determine the short term trend.

Nifty witnesses some recovery, but not out of the woods yet

Market Outlook Graph 05-October-2023

The Nifty Midcap index has been consolidating in a range since last couple of weeks and is trading around crucial 20 DEMA support. The RSI oscillator is hinting at a losing momentum and hence, one should be very stock specific in this space from a near term perspective. 

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  Nifty Levels Bank Nifty Levels FINNIFTY Levels
Support 1 19490 44080 19570
Support 2 19440 43950 19500
Resistance 1 19630 44370 19750
Resistance 2 19670 44520 19820

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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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