Dalal Street closes deep in red again; Nifty support now placed in 17500-17600 range

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October 29, 2021 4:34 PM

S&P BSE Sensex ended 677 points or 1.13% lower at 59,306 while the NSE Nifty 50 index closed 185 points or 1.04% in red at 17,671.

NiftyNifty has closed near crucial support levels and needs to hold above that to avoid further correction. (Image: REUTERS)

Bears continued to dominate Dalal Street momentum, forcing benchmark indices to close deep in the red for third day straight. S&P BSE Sensex ended 677 points or 1.13% lower at 59,306 while the NSE Nifty 50 index closed 185 points or 1.04% in red at 17,671. Sensex has dropped 1.9% this week while Nifty 50 has moved 2.2% lower. Bank Nifty closed Friday’s session 1% lower at 39,115. Going ahead analysts believe Nifty has closed near crucial support levels and needs to hold above that to avoid further correction.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

“The markets have closed at a crucial point. Today’s low of the Nifty has become a support for the short-term trend. If we break 17550-17500, sell signals would get activated which can drag the index down to 17200. On the upside 17900 is a stiff resistance and any expectations of trading on the long side will only emerge post this level. Stops are wide and traders should exercise extreme caution.”

Rohit Singre, Senior Technical Analyst at LKP Securities

“After showing a strong volatile week Index closed a week at 17672 with loss of more than two percent and formed a bearish candle after forming bearish piercing candle last week hinting weakness. On daily chart index reached to its good support zone 17600-17500 zone from where we have been witnessed a good move towards 18600 zone so if mentioned levels survived then one can again expect decent pullback towards 17800-17900 zone which are the immediate resistance also on the higher side, fresh move only possible above 18k mark.”

Sachin Gupta, AVP, Research, Choice Broking –

“On the technical chart, the nifty index has taken immediate support of prior swing lows and lower Bollinger Band formation. The nifty has also tested support at 50-Days SMA and closed above it. However, important key indicators like RSI, Stochastic & MACD have witnessed some weakness. At present, the Index has immediate support at 17650 levels while resistance comes at 17900 levels.”

Joseph Thomas, Head of Research, Emkay Wealth Management –

“The equity markets trended lower for the week owing to selling pressure from FIIs. The FIIs have been net sellers to the tune of more than Rs. 20K crores for the month of October. The valuation risks have been one the main concerns for foreign investors, triggered by the downgrading of Indian equity markets from “overweight” to “neutral” by key global brokerages. The valuation risks are specifically coming to the fore now as few sections of the markets expect growth momentum to slow in the wake of sticky inflation.”

Ajit Mishra, VP – Research, Religare Broking –

“Earnings disappointment combined with feeble global cues is weighing on the sentiment. Apart from the earnings announcements, participants will be closely eyeing the upcoming US Fed meet and auto sales numbers for cues. Indications are pointing towards further slides so participants should maintain a cautious approach and prefer a hedged approach.”

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