StockEdge Morning Market Update - 3rd Sept
The Nifty gained 42 points to close at 25,278. While the index reached higher levels, broader participation and momentum were lacking. The advance-decline ratio was neutral for both Nifty 50 and Nifty 500. The index hit its high within the first 15 minutes at the mentioned resistance level of 25,350 and then traded within a narrow range for the rest of the day. The IT and FMCG sectors were again the top gainers.
Technical Overview: Yesterday's session saw an opening high candle. Volatility was low, as the market remained range-bound. However, taking a broader view, the index has consistently made higher highs since breaking above 24,450, gaining nearly 900 points in 12-15 trading sessions. This uptrend has been supported by various global factors. Notably, every dip has been bought into, with the index continuing to make higher highs. Some daily oscillators are now showing overbought conditions. On the upside, the 25,500-25,600 area is a critical level based on Fibonacci and pattern studies. On the downside, immediate support levels are at 25,150 and 24,950.
Sector Overview: Bank Nifty is slowly inching up, maintaining its trend. IT and Pharma sectors continue to perform well. Bajaj Group stocks have shown strong performance over the past week. Overall momentum in this segment appears strong. Additionally, selective stocks from Tata and Mukesh Ambani's portfolios are showing positive momentum.
Conclusion: As the index inches higher, riding the trend and focusing on quality stocks should be a sound approach.
Nifty Levels:
Bank Nifty Levels:
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