Market Outlook for 09 September 2024

Nifty Prediction for Today - 09 September

Nifty registered a new record high in the week gone by, but the market corrected sharply in Friday's session and ended at 24850 with a weekly loss of one and a half percent.

There were no negative signs from the global markets on Friday, but our markets witnessed sharp correction as sell-off was seen across broader markets. This Friday’s move has resulted in formation of a ‘Bearish Engulfing’ pattern on the weekly chart and the RSI on the daily chart has given a negative crossover, forming a negative divergence as compared to previous high. This set up is short term bearish and hence, it could be the start of a corrective phase.

Now until this recent high of 25300 is surpassed, we change our view to bearish based on the price pattern formed. Hence, traders are advised to stay cautious and look to lighten up longs on any pullback moves. The immediate support for Nifty is placed around 24600 which is the 40 DEMA, and if the support gets breached then it could even correct upto the 89 DEMA which is placed in the range of 24000-23900.

Most of the sectoral indices have negative RSI crossover on the daily chart. Consumer durable and Pharma are only sectoral indices with positive setups. Hence, it is advisable to book profits on exiting long positions and wait for signs of reversal again.    

Market corrected sharply leading to bearish pattern on Nifty

Bank Nifty Prediction for Today - 09 September

The Nifty Bank index was unable to surpass the 61.8 percent retracement of the recent corrective phase and has resumed its corrective phase. The RSI on the daily chart has given a negative crossover and considering the recent relative underperformance, we could see a continuation of the same in the near term.

The PSU Bank index has given a breakdown from a ‘Symmetrical Triangle’ pattern which is a bearish sign. The immediate support for Bank Nifty is placed around 50370, followed by the swing low at 49650-49700.   

Nifty, Bank Nifty Levels and  FINNIFTY Levels: