Market Outlook for 30 September 2024

Nifty Prediction for - 30 September

It was another terrific week for our markets as Nifty surpassed the 26000 mark for the first time and Sensex almost tested 86000 level. The sectoral rotation has kept the momentum intact in the benchmark and Nifty ended the week just below 26200 with gains of one and a half percent.

In the week gone by, the Nifty and Sensex have achieved new milestones which hint at a continuation of the uptrend. In the derivative segment, the rollovers in Nifty were better than its 3-month average hinting at long positions rolled to the October series. However, the recent up move has been led by long formation by the FII’s in the index futures segment.

Their ‘Long Short’ position now at the start of the new series is around 80 percent, which is ‘long heavy’ as per historical data. Such positions restrict the room to create new longs and the Clients segment has not been forming bullish positions off late. Technically, the RSI oscillator has reached the overbought zone and the index is trading around the resistance of 26270 as per the retracement theory.

Due to this, we may see the rally getting concentrated to fewer stocks in the near term and hence, we advise traders to start booking profits in trading long positions here and be very selective in stock picking for fresh positions. In case the index extends the upmove in the overbought zone, then the next retracement resistance will be seen around 26500-26650. On the flipside, the near term supports are placed around 25970 and 25700 which can be tested in corrections. 
 

FIIs buying positions seems ‘long heavy’ at start of October series 

Bank Nifty Prediction for - 30 September

The Nifty Bank index rallied higher during last week, but it gave up the gains in Friday’s session. The Nifty Bank index has resisted around the 127 percent retracement level of its previous correction and hence, needs to surpass 54350-54500 zone for a continuation of the uptrend. A failure to do so could result in some dip towards the supports of 53350 and 53200. Traders are advised to watch for the follow up move and avoid chasing stocks at higher levels.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: