Market Outlook for 07 October 2024

Nifty Prediction for - 07 October

Our markets entered a corrective phase and witnessed sharp down move in last one week. Nifty ended the week at 25014, with a weekly loss of 4.45 percent.

In last one week, our markets had seen several news flows such as rising geo-political tensions, various steps taken by SEBI to reduce speculation in derivatives, and rebound in the Chinese equity markets raising the possibility of shift on fund flows from the Indian markets.

However, the data had already hinted at the possibility of a correction as FIIs index futures positions were overbought at the start of the October series and the RSI on Nifty was in the overbought zone. Also, the retracements indicated major resistance around 26270 and the index reversed precisely from those levels.

Now the tide has turned as FIIs have unwound long positions and have been selling equities in the cash segment. This combination of FIIs selling in cash segment and unwinding/short formations in index futures segment is bearish for the markets. The daily RSI is negative and the weekly readings also have given a negative crossover hinting that the corrective phase could continue for some time.

Hence, traders are advised to stay cautious for a while and avoid bottom fishing till we see signs of reversal. There would be pullback moves in between which are likely to see selling pressure at higher levels. The immediate support for Nifty is placed around 24800-24750 which is 61.8 percent retracement level followed by 89 DEMA around 24500. On the higher side, immediate resistances are seen around 25200/25350.

Nifty struggles amid weak global sentiments, falls below key support levels 

Bank Nifty Prediction for - 07 October

The Bank Nifty index has continued its downward momentum, breaking below key technical levels, including the 50-day exponential moving average and the 61.8% Fibonacci retracement level from its prior rally (49654 to 54467), and signaling short-term weakness. However, momentum indicators on the hourly chart suggest an oversold condition, indicating a potential pullback in the near term. Traders are advised to adopt a sell-on-rise strategy until there is a clear reversal. Immediate support levels are at 51000 and 50370, while resistance is seen at 52070 and 52650 on the higher side.

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