Sensex recovers 623 pts from day’s low, still ends in red; Nifty support now at 17550 -17600

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September 28, 2021 4:24 PM

BSE Sensex and Nifty 50 ended more than half a per cent down on Tuesday, recouping over 50 per cent of the intraday losses

Sensex, NiftyThe Nifty option chain for 30 September 2021 expiry showed maximum Call OI of 89.4 lakh contracts at the 18,000 strike price.

BSE Sensex and Nifty 50 ended more than half a per cent down on Tuesday, recouping over 50 per cent of the intraday losses. BSE Sensex settled 410 points down at 59,668, Nifty 50 index finished trade at 17734, down 121 points. Buying in index heavyweights such as Reliance Industries Ltd (RIL), Kotak Mahindra Bank, Power Grid Corporation of India, NTPC and Sun Pharma lifted the benchmark index from the level that was last seen on 16 September 2021. Weakness in Infosys, ICICI Bank, Housing Development Finance Corporation (HDFC), Bajaj Finance, Bharti Airtel, HDFC Bank, others contributed the most to the indices’ loss. The broader markets too performed in tandem with equity benchmarks. The BSE Midcap index fell 0.71 per cent and the BSE Smallcap 0.62 per cent. India VIX, the volatility index, gained 2.67 per cent to settle at 18.54 levels. Technical analysts say that the market has completed one leg of correction and 17600 -17550 levels would act as a sacrosanct support zone.

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

Markets faltered as investors resorted to profit-taking after the record-breaking rally in the last few sessions. Investors booked profit in realty, IT and select telecom and banking stocks that saw benchmark Nifty plunge sharply but trimmed losses to end below 17800 which is broadly negative. Technically, on daily charts the index has formed a bearish candle which indicates further weakness from current levels. However, as long as the index is trading above the 20 day SMA, the uptrend texture is intact. We are of the view that the market has completed one leg of correction and now 20 day SMA and 17600 -17550 levels would act as a sacrosanct support zone. For day traders, 17800-17840 would be the intraday resistance level. On the flip side, 17600–17550 would be the strong intraday support zone. The texture of the market is volatile and it will remain volatile till the monthly expiry day.

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

The Nifty was a roller coaster ride today! The index took support at the 17500 level and bounced sharply from there. The trend is still positive and dips like these can be strategically utilized to enter long positions. If the markets move higher from here, it should scale up to 17950-18000.

Binod Modi, Head Strategy, Reliance Securities

Nifty 50 traded volatile with rollover moves ahead of the monthly derivatives expiry, as the broader markets slump on profit selling and the breadth turned negative. Nifty 50 recovered its partial loss from the support of 17,600 and closed down 120 points lower. We believe improved advance tax payment by corporates, strong economic recovery, sustained growth prospects and local fund buying interest will be positive for the market sentiment. Expects stocks specific action in the market and traders buy on decline strategy ahead of Thursday September series F&O expiry. The Nifty option chain for 30 September 2021 expiry showed maximum Call OI of 89.4 lakh contracts at the 18,000 strike price. Maximum Put OI of 59 lakh contracts was seen at 17,000 strike price.

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty after making a low at 17576, staged a smart recovery. In this process it filled the upgap formed on Sept 23. In case this recovery continues and is sustained over the next 1-2 days, then Nifty will still have a chance to touch 18000. Advance decline ratio continues to be in the negative, reflecting the broader soft sentiments. 17802-17819 is the resistance in the near term for the Nifty while 17580-17611 is the support.

Vinod Nair, Head of Research, Geojit Financial Services

Following negative global cues and profit booking in IT and realty sectors, the domestic market hit rough weather, however, it witnessed a rebound towards the closing. Rise in US bond yield and crude oil price along with the Chinese crisis acted as key headwinds to the ongoing rally in the global market. Amid broad-based selling in the domestic market, public sector, energy and metal stocks traded higher

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