Market Strategist Predicts Gains, Sets Key Levels for Nifty 50 and Nifty Bank

New Delhi – A prominent market analyst anticipates continued upward momentum in Indian equity markets on Tuesday, September 9, but cautions investors to remain vigilant amidst potential profit-taking. The assessment focuses on key levels for the Nifty 50 and Nifty Bank indices,offering guidance for both existing positions and fresh entries.

Nifty 50 and nifty bank: Support and Resistance

The analyst projects immediate support for the nifty 50 index between 24,625 and 24,700 points, with a strong buying chance emerging between 24,500 and 24,575 points. On the upside,a resistance zone is anticipated between 24,825 and 24,900,possibly triggering profit-booking between 24,950 and 25,050 points.

For the Nifty Bank index, support is expected between 53,900 and 54,075, with a favorable buying range between 53,575 and 53,750. Resistance is forecast between 54,375 and 54,500 points,with potential profit-booking around 54,700 to 54,900.

Did You Know? The Nifty 50 represents the combined market capitalization of 50 of the largest Indian companies, serving as a benchmark for overall market performance.

Sectoral highlights and Key Data Points

Recent market data reveals a sustained uptrend, with both Nifty 50 and Nifty Bank indices logging four consecutive days of gains. nifty Auto and Nifty Metal have reached 11-month and 10-month highs respectively. Reliance Industries closed at a seven-month high of rs 1,378, while HDFC Bank exceeded its 100-day exponential moving average (EMA) at Rs 966.

Foreign Institutional Investors (FIIs) have shown a slight shift in sentiment, with a net buying of Rs 9 crore in index futures and Rs 1,262 crore in stock futures after four days of selling. Global cues remain positive, as Nasdaq, Dow, and S&P 500 are trading near lifetime highs, and Nikkei also reached a new high.

Infosys Buyback Fuels Optimism

The impending board meeting of Infosys on September 11 to consider a share buyback is generating considerable excitement. Analysts anticipate a sizeable tender offer, which could provide a important boost to the stock. the company has not initiated a buyback in over two years.

Pro Tip: A share buyback typically signals management’s confidence in the company’s future prospects and can lead to increased earnings per share.

Trading Strategies and Risk Management

For existing long positions, intraday stop losses are recommended at 24,700 for Nifty 50 and 53,950 for Nifty Bank, with closing stop losses at 24,600 and 53,950 respectively. Existing short positions should set intraday and closing stop losses at 24,900 for Nifty 50 and 54,600 for Nifty Bank.

Aggressive traders are advised to consider buying Nifty 50 between 24,625 and 24,700, with a stop loss at 24,500. Conversely, selling Nifty 50 in the 24,875-25,000 range, with a stop loss at 25,150, could also be a viable strategy. Similar strategies apply to Nifty Bank, with corresponding levels.

RBL Bank has been added to the list of stocks currently under F&O ban.

AB Lifestyle shares are recommended for purchase in the spot market, aiming for targets of Rs 145, Rs 147, and Rs 150, with a stop loss at Rs 141.5.

What strategies are you employing to navigate the current market volatility? Share your thoughts in the comments below! Do you think Infosys will experience a significant rally following the buyback announcement?