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Nifty Prediction for 3rd September 2024.
Nifty opened higher but consolidated below 25,300, led by FMCG sector. Nifty Metal and CPSE Index declined. Fear among investors rose as market rose for the 5th Straight session, with a potential short-term correction indicated. Market is likely to consolidate before US Fed's monetary policy change with resistance at the 25,500 level and the support at the 25,200 and 25,000 levels.
Nifty Opened a little higher on Monday but consolidated within a narrow range after making a new high of 25,333.65 and closed a bit below the 25,300 mark led by the FMCG sector, while Nifty Metal saw the sharpest decline by 1.04% followed by the CPSE Index.
The broader market index traded nearly flat for the day, as we enter the new month where the US Fed is expected to cut the interest rate impacting the global equity market which probably leads to a Bull Run – hence Nifty is likely taking a pullback to rally further higher in the coming days.
India Vix also rises (which states the fear among the investors) by as much as 5% rising to 14.06 and Nifty forms a Bearish Belt Hold Pattern at the all-time high level which indicates a potential short-term correction if followed by a bear candle the next day.
Looking at the Nifty 50 Stocks,
Top Gainers: Bajaj Finserv, Bajaj Finance, HCL Tech, Hero Motors, SBI Life
Top Losers: Hindalco, Dr Reddy’s, Tata Motors, NTPC, ONGC
Also Read: 7 Best Solar Energy Stocks in India for 2024. CAGR Growth of 30%
Nifty 50 Prediction for 03 September 2024
On the Hourly technical chart of Nifty, it formed a Bearish Belt-hold pattern and the market leads further lower following the first candle, which indicates a rising bearish/fear sentiment among the investors as Nifty continues to rise for the fifth straight session and makes a new all-time high on all the following Five days.
This Pattern is mostly bearish if a following bearish candle forms on the chart, with its wick lower from the previous one, but the upper wick does not rise above the previous one’s wick and the body ends below the body of the previous candle – as the market reaches new high day after day, investors are fearful – hence we might see some correction in the short term.
Also, Nifty saw a sharp rise in the Call OI at corresponding high levels with a decline in Put OI which states that the investors are ready for a short-term correction.
Also, FIIs have shown some short covering in the Nifty Futures which suggests that the money is leaving the market – which is a potential bearish indicator as they sold Nifty Futures worth Rs. 840 Cr on Monday.
What to Expect from Nifty on 03 September 2024
However, along with all these tensions, the market view is still positive as both FIIs and DIIs are the net buyers in the cash segment on Monday. But the bearish sentiment in the Derivatives segment is mostly because of profit booking and we might see Fresh Long Positions in the Nifty soon, leading the market higher.
So for Tuesday, 3rd September 2024 – Nifty is likely to open flat or a little higher with resistance at the 25,300 level followed by the 25,500 level with Nifty likely to trade higher after a short pullback to the lower trendline of the Higher High and Higher Low Pattern – and will continue its upward journey.
But Instead of going for Derivatives in Index, a Stock Specific approach is best for this week – as the market is likely to consolidate and it mostly does the same ahead of any big event and in this case – it is US Fed Monetary Policy Change.
“Here are the trading levels for Nifty – 24,800 – 25,500“
Nifty 50 Support and Resistance for 03 September 2024
| Nifty Support Levels | Nifty Resistance Levels |
|---|---|
| 25,200 | 25,300 |
| 25,000 | 25,400 |
| 24,800 | 25,500 |
Note:- For the Most Accurate Data you can revisit this Page after 11:00 AM (during Trading hours), so we can update the Trade Setup after analyzing the Market.
Happy Trading 🙂
