Market Summary for September 18, 2023

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The Indian stock market saw some profit-booking on September 18, 2023, after a strong rally in the previous week. The Nifty50 index closed at 20,133, down 59 points or 0.29%, while the BSE Sensex index closed at 67,597, down 242 points or 0.36%.

Key Takeaways

  • The overall market sentiment remains positive, with the Nifty50 index expected to hold above the 20,000-19,900 support zone.
  • The Bank Nifty index has an immediate support zone in the range of 45,800 to 45,700.
  • The PSU bank sector is expected to continue its outperformance in the near term.
  • The maximum weekly Call open interest (OI) was at the 20,200 strike price, which could act as a key resistance level for the Nifty50 index.
  • The maximum Put open interest remained at the 20,100 strike price, which could act as an important support level for the Nifty50 index in the coming sessions.

Actionable Insights

  • Investors can look to buy on dips in the Nifty50 and Bank Nifty indices, as long as the key support levels are held.
  • Investors can also look at PSU bank stocks for potential outperformance in the near term.
  • Investors should keep a close eye on the 20,200 and 20,100 strike prices on the Nifty50 index, as they will play a key role in determining the market direction in the coming sessions.

Additional Notes

  • The Indian stock market has been on a tear in recent months, with the Nifty50 index hitting a record high of 20,222 on September 16, 2023.
  • The rally has been driven by a number of factors, including strong corporate earnings growth, positive foreign institutional investor (FII) inflows, and a favorable macroeconomic outlook.
  • However, the recent profit-booking suggests that investors are taking some caution, ahead of the Federal Reserve’s interest rate decision on September 21, 2023.
  • Overall, the Indian stock market remains attractive for investors, with a number of positive factors supporting the rally. However, investors should be mindful of the risks involved, and should carefully consider their investment objectives and risk tolerance before making any investment decisions.

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