Indian markets on Tuesday gave fast swings on both sides, making it a good day for index traders. India VIX inches higher towards 20 marking the high volatility of the markets.
Nifty was able to cross 25000 mark once again but was not able to sustain above it, and formed an indecisive candle on daily charts. Similary SENSEX was not able to give any confident closing making it difficult for positional traders to predict the next move of the market, and make positions accordingly.
Support Levels/Demand Zones: For NIFTY, strong support level that can start a new rally in the market is near 24000, while in SENSEX that translates to 79500 levels. Before that, all support zones should be treated as strictly intraday.
Resistance Levels/Supply Zones: NIFTY has 25300, 25900 and 26150 levels that can strongly resist any upward move. SENSEX has 84600 and 85500 levels that can prove to be speedbreakers for any future rallies.
Sectors to Watch with NIFTY Support levels: IT and FMCG sectors are well poised to give good rallies and may prove to the sectors that can lead the next rally in the markets. Any correction in these sectors is opening up space for buying opportunities, but only when NIFTY approaches mentioned support levels.
For large cap IT, INFY TCS ad WIPRO are the best candidates to bet on, while in midcap IT MPHASIS and COFORGE are showing potentital for good risk reward ratios.
FMCG space has been consolidating for a while now. Any market support and resulting rally can give a good breakout opportunity for traders.
Sector Update:
FMCG and IT were the weakest today, dragging broader markets with them while DEFENCE sector keeps outperforming the markets. Post Op Sindoor, this space has seen one sided rally and on Tuesday also, NIFTYDEFENCE Indices closed with a solid 1% gains.
Learnings for traders and retailers:
- Trading is a high risk and high reward enterprise. Make sure you have an experience mentor and guide before venturing in trading, else there are high chances of consistent losses than consistent profits.
- Bigger the consolidation, bigger the breakout.
