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Below the Quote on Pre-market comment by Ameya Ranadive CMT CFTe, Research Analyst, Choice Broking

GIFT Nifty signals a negative start for the Broader Index today.

The recent market trends indicate a cautious outlook for Nifty and Bank Nifty. Nifty concluded Wednesday's session with a notable decline, breaching a significant support level at the 20-week EMA and shattering a crucial demand zone that had been intact since July 2023.

 The forthcoming monthly October expiry holds substantial importance, as today's closing figures will be instrumental in charting the course ahead. Presently, the short-term trajectory for Nifty remains pessimistic.

While there exists a potential for a minor upside rebound in the vicinity of 19,100-19,000 levels, a breach of the 19,000 mark could potentially pave the way for a further downturn towards 18,800-18,650 levels in the near future.

 Any potential upward movement is likely to encounter robust resistance at 19,250-19,350 levels. Meanwhile, Bank Nifty has also witnessed a breach of its support range at 43,400-43,800, coupled with a close below its 200 EMA, indicating a forthcoming period of weakness. The next crucial support level for Bank Nifty is situated at 42,000-41,700. It remains to be seen whether short covering will materialize or if fresh short positions will be established in both Nifty and Bank Nifty.

Given the prevailing bearish sentiments in both indices, market participants are advised to exercise prudence and adopt a discerning, stock-specific approach in their investment strategies.

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