Sensex, Nifty fail to continue marching higher; indices may consolidate, experts say wait and watch

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November 02, 2021 4:16 PM

Bulls failed to continue the upward march on Tuesday as Sensex and Nifty closed with losses after witnessing a volatile trading session.

Nifty 50S&P BSE Sensex ended 109 points lower at 60,029 while NSE Nifty 50 dropped 40 points to end at 17,888. (Image: REUTERS)

Bulls failed to continue the upward march on Tuesday as Sensex and Nifty closed with losses after witnessing a volatile trading session. S&P BSE Sensex ended 109 points lower at 60,029 while NSE Nifty 50 dropped 40 points to end at 17,888. Maruti and NTPC were the top gainers on Sensex, followed by Titan, SBI, and Larsen & Toubro. Tata Steel, Tech Mahindra, and HCL Technologies were the top laggards. Broader markets outperformed the benchmarks with Bank Nifty inching closer to 40,000, gaining 0.44%. Nifty Midcap 50 and smallcap 50 indices closed nearly 1% higher each. 

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities –

“Investors are trading cautiously ahead of Diwali festival and have booked profit in select counters that have run-up sharply in the recent upsurge. After a firm opening, Nifty failed to clear the crucial 18000 resistance level. Although the intraday texture is still positive, the key concern is that the Nifty has been consistently facing resistance near the 20-day SMA or 18000 level. For traders, 18000 and 18050 could act as an important breakout level. We are of the view that ahead of the weekly expiry, the index is likely to consolidate in the range of 17800 to 18050 levels. For Nifty, the intraday support has been placed at 17850-17800, whereas 20-day SMA or 18050 would act as a key resistance level. On the other side, the dismissal of 17800 could possibly trigger another correction wave up to 17725.”

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

“The Nifty was unable to maintain a close above 17900 – this is a crucial point as the markets can either rally up or break down from this level. Hence it is advisable to watch the index closely for a couple of sessions before taking a directional call. The markets can give 300-400 points move in either direction.”

Palak Kothari, Research Associate, Choice Broking –

“On the technical front, the Index has taken resistance from 21 DMA and showed correction, crossing above the same can show further upside movement. On the intraday hourly chart, the Index has been trading with lower high & lower low, which indicates weakness for the upcoming session. However, an Hourly Momentum indicator MACD is trading with a positive crossover which suggests bullish movement is intact. At present, the Nifty has immediate support at 17700 while resistance comes at 18030 levels, crossing above the same can show 18100-18200 levels.

Rohit Singre, Senior Technical Analyst at LKP Securities –

“Index has formed a good support zone around 17850-17780 zone & holding above said levels we may see index to trade with positive bias also existing longs can be hold with keeping stop out level below 17750 zone on closing basis, immediate & strong hurdle is formed near 17950-1800 mark until we don’t cross above 18k mark we may not see aggressive buying in the markets.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Succumbing to lacklustre global sentiments, domestic indices failed to gain ground oscillating between gains and losses in today’s rough session. Global markets remain jittery ahead of the upcoming Bank of England and Fed meetings where the central banks could cease the pandemic-era stimulus. Metal, oil and commodity stocks dragged, fueled by profit booking while realty, PSU bank and consumer durables made frail attempts at lifting the indices. Auto sector managed to remain buoyant despite weak auto sales numbers reported by sectoral majors due to supply chain disruptions, fuel price hikes and rise in input costs.”

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