Market Update as on 9.7.26

Good evening friends

Following the sharp correction witnessed on Wednesday, the benchmark Nifty opened with an upside gap on Thursday. The index gained momentum during the first hour of trade; however, it failed to sustain above its 100-day EMA and subsequently entered a consolidation phase, which was followed by a gradual decline.

The index eventually settled below the 24000 mark, ending the session with a gain of 0.34%. On the daily chart, Nifty formed an inside bar with a long upper shadow, indicating selling pressure at higher levels. The index is currently hovering around its 20-day and 50-day EMA levels, while the daily RSI remains in a sideways zone. Overall, the chart structure suggests a sideways-to-bearish bias in the near term.

Going forward, the 23800–23780 zone is expected to act as an immediate support area, as several previous swing lows are positioned in this region. A sustained move below 23780 could intensify the selling pressure and drag the index towards 23600, followed by 23450 in the near term. On the upside, the 24070–24100 zone is likely to act as an immediate hurdle area for the index.

June quarter earnings season will now become the biggest driver of market direction, with stock specific movements likely to dominate. Global developments, especially the situation in West Asia and crude oil prices, will remain key risks. Overall, we expect cautiously positive outlook in the coming sessions. Investors are advised to maintain a cautious approach, avoid aggressive positioning, and focus on disciplined risk management while adopting a selective, stock-specific trading strategy.

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Best Regards