Dalal Street slips for second day running amid weak global cues; Nifty support at 17750

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November 03, 2021 4:11 PM

S&P BSE Sensex closed 257 points or 0.43% lower at 59,771 while the NSE Nifty 50 ended 59.75 points lower at 17,829.

Bank nifty breached 40,000 mark earlier in the day but failed to hold above the said levels and closed in red. (Image: REUTERS)

Dometic benchmark indices closed with losses for the second day straight on Wednesday. S&P BSE Sensex closed 257 points or 0.43% lower at 59,771 while the NSE Nifty 50 ended 59.75 points lower at 17,829. Larsen & Toubro Ltd. was top Sensex gainer, up 4%, followed by Ultratech Cement, Asian Paints, and State Bank of India. Sun Pharma, IndusInd Bank, and Kotak Mahindra Bank were among the top laggards. Bank nifty breached 40,000 mark earlier in the day but failed to hold above the said levels and closed in red. Broader markets closed with losses, except Nifty Next 50, which was up 0.57%. Dalal Street will open on Thursday evening for muhurat trading. 

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities –
“Benchmark indices witnessed profit booking because of weak global market cues and stretched valuations. Benchmark Nifty found resistance near 18000 and corrected sharply. The index has been consistently trading below 20 day SMA and on intraday charts it has also formed a lower top formation near 18000, which is broadly negative for the market. However, as long as it’s trading above 17750 the uptrend texture is intact. We are of the view that 17750 would act as a key support level for the day traders, and above the same we can expect one more intraday upmove up to 17900-17975 levels. On the flip side, trading below 17750 could possibly trigger one more round of correction wave up to 17700-17660.”

Rohit Singre, Senior Technical Analyst at LKP Securities
“Index again showed profit booking and closed a day at 17829 with loss of nearly half percent & formed a bearish candle on the daily chart for the second consecutive candle. Index has formed a small consolidation zone of 17600 on the downside & 18k on the higher side until we don’t see either side breakout. We may not see a clear direction move. Index is unable to cross its strong zone of 18k mark in last two sessions until we don’t cross above said levels we may not see good buying comes in & profit booking can be witnessed towards immediate support zone of 17750-17700 zone.”

Palak Kothari, Research Associate, Choice Broking –
“On the technical front, the index has taken resistance from 21 DMA,which suggests some correction can be seen in upcoming days. Moreover, the momentum indicator stochastic is witnessed with a negative crossover indicating a downtrend. The index has settled below the Super Trend indicator indicating further weakness. Also, the index has settled below the Middle Bollinger Band. At present, the index has an immediate support of 17700 and a resistance of 18050 levels.”

Gaurav Udani, CEO & Founder, ThincRedBlu Securities –
“Since the last few trading sessions Nifty has been making lower Highs and lower lows, which is a bearish sign.  Nifty closed negative by 60 points at 17830 after taking resistance at 17990. Nifty has support in 17800 – 17650 range and resistance in 17950-18050 range. Traders are advised to be cautious in long positions and maintain strict stoploss.”

Vinod Nair, Head of Research at Geojit Financial Services
“After a sideways movement post its positive opening, the indices took a downturn as major global indices traded weak ahead of the Fed policy announcement. The Federal Reserve is widely expected to announce the tapering of its asset purchase program in the near-term while any hint on interest rate reversal is keeping investors on the edge. Any indications showing a faster rate of tapering will have a negative effect on the equity market. Or else, we can expect a reversal from this weak trend. On a positive note, despite the rise in input costs, India’s Services PMI jumped to 58.4 in October from 55.2 in September owing to ongoing improvements in demand boosting the growth of sales.”

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