Sensex, Nifty end 7-day gaining streak; experts advise caution, suggest defensive bets

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October 19, 2021 4:07 PM

Sensex, Nifty witnessed a volatile trading session on Tuesday, ending in the red after having touched fresh all-time highs earlier in the day.

Technical analysts believe investors should now wait and watch while avoiding hasty trading decisions. (Image: REUTERS)

Sensex, Nifty witnessed a volatile trading session on Tuesday, ending in the red after having touched fresh all-time highs earlier in the day. S&P BSE Sensex finished 50 points or 0.08% lower at 61,716, while NSE Nifty 50 ended the day at 18,418. Broader markets fared worse than the benchmark indices. Bank nifty touched 40,000 but closed lower at 39,540. Nifty Realty index closed 4.76% lower and the Nifty PSU Bank index was 3.74% lower. Nifty IT closed with gains. Technical analysts believe investors should now wait and watch while avoiding hasty trading decisions.

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

“The Nifty failed to close above the 18600 level, instead there was a sharp fall from the day’s high. The support lies at 18200 and unless we do not break that on a closing basis, the overall trend continues to remain positive. The current scenario would be summarized as a wait and watch situation and hence hasty trading decisions should be avoided.”

Sachin Gupta, AVP, Research, Choice Broking –

On the technical front, the nifty index has formed a long bearish candle at the top of the trend, which indicates a further reversal in the counter. However, the index has taken immediate support at upper Bollinger Band formation on the daily chart. While on an hourly chart, the stochastic has also tested the oversold zone. At present, the Index has immediate support at the 18200 level while resistance comes at 18600 levels.

Rohit Singre, Senior Technical Analyst at LKP Securities

“Profit booking has been witnessed in today’s session since the start of the day. The index managed to close the day at 18419 with a loss of half percent and formed a bearish candle on the daily chart after forming a doji candle yesterday. Going forwards 18480-18530 will be a strong hurdle on the higher side until we don’t cross above mentioned resistance. We may not see a bullish move or we may see more drag down in the index towards the immediate support zone 18350-18250 zone.”

Gaurav Udani, CEO & Founder, ThincRedBlu Securities –

On daily charts Nifty has made a bearish pattern and charts are suggesting that the correction in Nifty may continue in the next few trading sessions. Nifty has support at 18350 and 18225 levels. Nifty will face resistance in the 18480 to 18530 range. Traders are suggested book profits and keep strict stop loss in the current markets.”

Vinod Nair, Head of Research at Geojit Financial Services

“The Indian market was showcasing strong resilience however the stretched rally booked some gains by the end of the trading day. Our advice is to transform personal equity portfolios into a balanced basket with high weightage on defensive stocks & sectors. The Indian market is expected to get more stocks & sector-specific as market parameters are extremely stretched. While moving to defensives, though near-term trend can be dull, one can give decent weightage to sectors like manufacturing, power, tourism, chemicals, renewables energy & products on a long-term basis.”

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