StockEdge's Morning Market Analysis - 3rd Oct
The Nifty lost 13 points over the trading session to close at 25,796. Tuesday was a very range-bound session with not much action. The IT index was the top gainer, while PSE was the top loser. A positive takeaway was the advance-decline numbers, with the Nifty 500 showing higher advances than declines, while the Nifty 50 remained neutral. Geo-political developments over the past two days may cause a temporary knee-jerk reaction in the markets. GIFT Nifty is over 300 points down, hinting at a lower market opening.
Technically, the Nifty formed a doji pattern on Tuesday, right at its 13-period daily EMA. The market has been in pullback mode after testing the 26,300 levels. Broader studies remain positively placed, with 25,500 - 25,600 being the key support zones. Bulls are expected to step in at this level. We will closely monitor the price action here, and only a closing below this zone would be a concern, potentially harming the short-term momentum and trend. This level coincides with multiple technical studies and Fibonacci levels. On the upper side, 26,150 remains a key resistance.
In international indices, the US markets have largely absorbed the geopolitical developments without significant reaction. The Dollar Index has seen a slight uptick to 101.8, right at resistance levels.
To conclude - 25,500 - 25,600 remains the Lakshman rekha for the short-term trend on the Nifty.
Nifty
Bank Nifty
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