Nifty outlook: The Nifty managed to register an lead in the fourth consecutive season on Monday. It provided the support of global signals, domestic policy reforms and positive comments about US President Donald Trump about India. The index finally closed at 24,773 with a slight gain of 32 points, or 0.13%, between the initial boom and the decline after noon.
Now on Tuesday, September 9, how will the Nifty move, which level will be important, will understand it from experts. But, before that we know what happened in the market on Monday.
Midcap and smallcap
The broad market also lived with benchmarks’ move. The Nifty Midcap 100 index rose 0.50%, while the Nifty Smallcap 100 rose by 0.16%. Foreign investors sold in cash market on Monday, while domestic investors remained buyers.
How was the sectoral performance?
Auto stocks showed the most power. The Nifty Auto Index jumped 3.3% due to the strong Auto index of Tata Motors, Bajaj Auto, Mahindra & Mahindra and Eicher Motors. Auto companies announced a reduction in prices of vehicles following the GST Council’s decision to reduce tax.
- The IT sector broke 0.9%, as the concern increased about the sluggish pace of the US economy.
- Energy stocks led to profit -booking after last week’s rise.
- The defense index rose 0.5% and a two -day decline was broken. The trust of investors strengthened by the Ministry of Defense’s new 15 -year modernization scheme.
- The metal index went up 0.4%. The weakened American employment data increased the hope of deducting the rate of 25 basis points this month by Fed, which resorted to the commodity price.
Expert opinion on Nifty
Now investors’ eyes are on the decision of the US Federal Reserve’s interest rate. However, global trade remains concerned about stress and weak American GDP data. Siddharth Khemka of Motilal Oswal says that the market perception will remain positive at the moment with the expectations of GST rate deduction and possible rate cut.
Nagraj Shetty of HDFC Securities says that the broad trend of the Nifty is positive, but the resistance is visible at the level of 24,900–25,000. The next 1–2 sessions can see a little more consolidation or mild weakness. He says that immediate support for Nifty is at 24,620, while new purchases will be seen when they exhale strongly 25,000.
Nifty’s short-term trend positive
Nilesh Jain of Sentrum Broking said that the Nifty could not once again stand over 100-DMA (close to 24,800). The bottom support is at 24,710 and then 24,620. The market may remain within the radius of 24,600–24,950 before this week’s expiry. But if a breakout over 25,000 is received, the Nifty can go from 25,300 to 25,500.
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Nandish Shah of HDFC Securities said that Nifty has crossed the 20-day EMA (24,738), making the short-term trend positive. Now the resistance is at 24,900, on which short coverings can be faster. However, the downtrend may start again and the index may move up to 24,500.
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