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Market Overview

Post a decent run up in the previous month, the Indian markets witnessed profit taking in the month of September. The hawkish commentary of the US Fed to contain inflation spooked investor sentiments worldwide. Even though Indian markets outperformed it still bore the brunt of global equity sell off. Eventually both Sensex and Nifty ended with losses of 3.5% & 3.7% respectively.

Market Outlook

Going forward, market participants would keep a close watch on the inflation and growth data especially of large economies. As the rising interest rate is a cause of concern for equity investors globally and the aforementioned data would help ascertain the quantum and frequency of hikes going ahead. Back home, the trend of the market would depend on the upcoming earnings season as investors will keep a close watch on demand recovery, volume growth, input cost movement and margins. In the meantime, global cues, fluctuation in commodities and currency will be key monitorable.

Technical Outlook Nifty 50
 

* Nifty traded volatile and lost nearly four percent in September month, in continuation of the prevailing corrective phase. After the initial up move, the Nifty remained under pressure for most of the month and finally settled at 17094.35 levels.

* Most sectoral indices, barring FMCG and Pharma, traded in tandem with the benchmark and ended lower.

* Technically, the Nifty has been trading in a broader consolidation phase for the past year and currently trading closer to the upper band of the range. A decisive breakout above the 18000 mark would result in the resumption of the uptrend else consolidation will continue. Meanwhile, traders should continue with sector/stock-specific trading approach and utilize this phase to accumulate quality stocks from the top performing sectors like banking, finance, auto, FMCG and pharma.

Outlook for Nifty 50 (17274.30)*

Support 17,150/16,900/ 16,650

Resistance 17,550/17,800/18,100???????

Technical Outlook Bank Nifty

* Bank Nifty traded largely in sync with the benchmark index and finally settled with a cut of over two percent, to close at 38631.95.

* The recent correction is healthy as it has taken a pause after retesting the record high. And, it looks comparatively stronger. We expect the tone to remain positive till it holds 37500

* Keeping in mind the scenario, we recommend accumulating the leaders from the banking space like ICICI Bank, Axis Bank and SBI, etc.

Outlook for Bank Nifty (39110.05)*???????

Support 38,700/37,600/36,900

Resistance 40,300/40,800/42,000???????

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