Market Outlook for 04 October 2024

Nifty Prediction for - 04 October

Post the mid-week holiday, our markets started the day with a gap down on back of rising geo-political tensions and Nifty continued its down move throughout the day to end below 25250 with a loss of over a couple of percent.

Our markets had a bunch of news flows in last couple of sessions such as rising geo-political tensions, possibility of fresh fund flows to Chinese equity markets and various initiatives by SEBI in the derivatives segment. These news flows dampened the traders sentiment and hence, we witnessed a sharp sell-off in our markets throughout the day.

However, the data had already indicated a possible correction in our markets and we had highlighted the long heavy positions by FIIs at the start of the October series and the overbought RSI set-ups which usually lead to profit booking. Nifty has ended around the 40 DEMA support at 25222 and the RSI readings on the lower time frame chart are in the oversold zone.

Hence, there could be a pullback move in the index but the near term trend looks corrective and hence, selling pressure could be seen on pullback moves. If the index breaks the above mentioned support, then the correction should extend towards 25085 and 24800 which are the retracement levels.

On pullback moves, the resistance will be seen in the range of 25600-25700. Traders are advised to continue to trade with a cautious approach.  

Negative news flows led to sharp sell-off in Indian markets

Bank Nifty Prediction for - 04 October

The Nifty Bank index has continued its correction and breached its 40 DEMA support. The near term trends remain weak, but the lower time frame has oversold set ups. Hence, there could be a pullback move to relieve the oversold set ups. But, there are no signs of trend reversal as of now and hence, there could be selling pressure at higher levels. The immediate supports for the index are placed around 51500 followed by 51000. On the higher side, the resistance will be seen around 52625 and 53000.   

Intraday levels  for Nifty, Bank Nifty Levels and  FINNIFTY Levels: