Market Update: Profit Booking at Higher Levels Pulls Nifty and Sensex Lower

Benchmark indices experienced profit booking at higher levels. The Nifty closed 74 points lower, while the Sensex fell by 271 points. Among the sectors, the real estate index outperformed, gaining over 2%, while the digital index suffered the most, closing approximately 1.5% lower.

Market Recap

After a flat start, Nifty remained range bound for most of the day, but witnessed mild selling pressure towards the close, and finally settled negative with a loss of 0.30%

The Nifty Midcap 100 outperformed the Nifty 50, closing positive with a marginal gain of 0.08%

Technical Perspective

After a muted opening, the market faced selling pressure at higher levels. The daily chart formed a small bearish candle, indicating temporary weakness. However, the short-term market structure remains positive.

For day traders, the levels of 25,000-25,100 / 82,200-82,500 will act as a trend-deciding zone. If the market falls below this level, we may see an intraday correction towards 24,800-24,700 / 81,500-81,200, where there is support from the 10-day EMA.

Conversely, a breach of 25,100 / 82,500 could change market sentiment. If this level is surpassed, the market has the potential to rise towards 25,300-25,400 / 83,100-83,400.

Trading Strategy:

• Buy Nifty if it crosses 25,100, with a stop loss set at 24,950.

• Buy at support between 24,800 - 24,700 levels.

Bank Nifty Outlook

It is essential for Bank Nifty to surpass the 56,100 level; until then, maintain a range trading approach between 56,100 and 54,100.