StockEdge Morning Market Update - 12th September

The Nifty lost 122 points over the day to close at 24,918, wiping out all the gains from the previous session. The indices started flat, saw an upmove in the first half, but eventually pulled back—closing near the lows. Market breadth clearly favored the bears, with both the Nifty 50 and Nifty 500 showing weakness in the advance-decline ratio. Apart from the FMCG sector, all sectors ended in the red.

Technically, we can see the range-bound movement on the index. Sellers are active at the resistance level of 25,100, while buyers emerge near 24,800. The 24,800-25,100 range remains intact. The concern is that indicator studies have shown bearish triggers, such as MACD, while RSI and stochastics are not performing well. The candlestick patterns forming also lack solid momentum. We’ll need to wait for a few sessions for more clarity, with 24,800 acting as the "Lakshman Rekha." If this level is broken on a closing basis, we may see a deeper correction of 3-5%.

Sector Overview:

• The PSE index remains weak with no signs of bottoming out, so it's best to avoid bottom-fishing in this space.
• The FMCG sector saw a pullback from its highs, forming a shooting star candlestick pattern. A move below yesterday's low could trigger some profit-booking.
• Bank Nifty has been an underperformer, stuck within a range, showing relative weakness.

In global markets, US indices had a volatile session yesterday, but showed a good recovery from the lows.

Conclusion: The index remains in its range. Be extremely selective when choosing stocks, and assess risk-reward before entering fresh trades. Watch the 24,800-25,100 range on a closing basis for any real momentum.

Nifty

• Support: 24,900, 24,800
• Resistance: 25,100, 25,150

Bank Nifty

• Support: 50,950, 50,400
• Resistance: 51,300, 51,400

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