Market Outlook for 20 September 2024

Nifty Prediction for Tomorrow - 20 September

Nifty started the day on a positive note following the bullish sentiments on FED’s interest rate cut decision. After the initial hour of the trade the broader markets witnessed sell-off, but Nifty managed to trade in positive territory and ended around 25450 with marginal gains.

It was a typical event based volatility in our markets in Thursday’s session. The Fed decided to cut the benchmark interest rates by 50 basis points and our markets reacted positively at open. However, profit booking was seen in segments such as Midcaps, small caps and IT sector where there was a run-up already seen before the event.

Sectors such as banks and FMCG witnessed positive momentum and thus prevented any significant fall in the index. Nifty has kept the supports intact while the daily RSI is also positive, thus the near-term uptrend for the index remains intact. This support placed around 25200 is important for the near term while resistances is seen around 25600. A breakout beyond this range will lead to the next directional move in the index.  

Thursday’s low of 58375 in the Midcap100 index coincides with its 40 DEMA and thus would be seen as the crucial near term support.

Profit booking seen in broader markets post the FED event

Bank Nifty Prediction Tomorrow - 20 September

Inspite of profit booking in the broader markets, the banking stock continued to show strength and witnessed a relative outperformance, thus supporting the benchmark as well. The near term trend continues to be positive for the Bank Nifty index and hence, traders are advised to continue to trade with a positive bias. Thursday’s high in the index of 53353 coincides with the previous all-time high which was registered on 4th July 2024 and thus is important hurdle. A breakout above the same will lead to an outperformance in the banking index. On the flipside, 52350 and 51850 will be seen as important supports on any correction. 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: