Stock Market Levels for Tomorrow: 4 October 2023 NIFTY AND BANNIFTY

Stock Market Levels for Tomorrow: 4 October 2023 NIFTY AND BANNIFTY

Stock Market Levels for Tomorrow: Nifty and Bank Nifty, 4 October 2023

The Indian stock market closed flat on Tuesday, 3 October 2023, after a volatile trading session. The Nifty 50 index ended the day at 19,638.30, up 114.75 points or 0.58%. The Sensex 30 index closed at 65,828.41, up 320.09 points or 0.49%.

Technical analysts say that the Nifty is currently trading in a range between 19,500 and 19,850. The index is likely to consolidate in this range for the next few days, before making a decisive move in either direction.

Here are some key levels to watch for on the Nifty tomorrow:

  • Support: 19,500-19,480
  • Resistance: 19,790-19,850

If the Nifty closes above 19,765 tomorrow, it could signal a short-term rebound towards levels between 19,900 and 20,000. However, if the index closes below 19,500, it could open the door for a further sell-off towards levels around 19,300.

NIFTY LEVELS FOR 4TH OCT 2023

https://www.nseindia.com/option-chain

Global cues

Stock markets in Asia and Europe are trading mixed ahead of the US Federal Reserve’s meeting on Wednesday. A hawkish statement from the Fed could weigh on global markets, as investors worry about the potential for a recession.

The Fed is widely expected to raise interest rates by another 0.75% at its meeting this week. This would be the third consecutive rate hike of this magnitude, and it would bring the Fed’s benchmark interest rate to a range of 2.25% to 2.5%.

A hawkish statement from the Fed could lead to a sell-off in global stock markets, as investors worry about the impact of higher interest rates on economic growth.

Domestic economic data

The Reserve Bank of India is scheduled to release its quarterly macroeconomic review tomorrow. This report could provide some insights into the state of the Indian economy.

Investors will be particularly interested in the RBI’s assessment of inflation and growth. The RBI has been raising interest rates in an effort to contain inflation, but this could weigh on economic growth.

If the RBI’s macroeconomic review shows that inflation is still above target and growth is slowing, it could lead to a sell-off in Indian stock markets.

Corporate earnings

Several blue-chip companies are scheduled to announce their quarterly earnings tomorrow. These results could have a significant impact on the stock market.

Investors will be particularly interested in the earnings of companies in sectors such as IT, banking, and consumer staples. These sectors are considered to be defensive, meaning that they are less sensitive to economic downturns.

If the earnings of these companies are strong, it could provide some support to the stock market. However, if the earnings are weak, it could lead to a sell-off.

Investment advice

Given the uncertainty surrounding the Fed’s monetary policy stance and the RBI’s macroeconomic review, investors should be cautious and trade with a stop-loss in place tomorrow.

It is advisable to wait for some clarity on these factors before making any major investment decisions.

Additional factors to watch

In addition to the factors mentioned above, investors should also watch the following factors on Thursday:

  • Crude oil prices: Crude oil prices have been volatile in recent weeks, and they could continue to influence the stock market tomorrow.
  • US Treasury yields: US Treasury yields have been rising in recent weeks, and they could continue to put pressure on stock prices.
  • Foreign institutional investor (FII) flows: FII flows have been negative in recent months, and they could continue to weigh on the stock market.

Conclusion

The Indian stock market is likely to remain volatile tomorrow, as investors await the outcome of the US Federal Reserve’s meeting and the Reserve Bank of India’s quarterly macroeconomic review.

Investors should be cautious and trade with a stop-loss in place tomorrow. It is advisable to wait for some clarity on the Fed’s monetary policy stance and the RBI’s macroeconomic review before making any major investment decisions.

Here are some more specific investment ideas for tomorrow:

  • Buy Bank Nifty calls if it closes above 44,700 tomorrow.
  • Sell Nifty puts if it closes below 19,500 tomorrow.
  • Buy IT stocks such as Infosys and TCS if they show signs of a rebound tomorrow.
  • Buy consumer staples stocks such as Hindustan Unilever and Nestle India if they show signs of strength tomorrow.

These are just some ideas, and investors should do their own research before making any investment decisions.

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