Sensex snaps gaining streak; Nifty support at 18100, pullback rally may take index to 18300-18350

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October 27, 2021 4:25 PM

S&P BSE Sensex closed 206 points or 0.34% lower at 61,143 while NSE Nifty 50 dropped 57 points or 0.31% to end at 18,210.

Broader BSE Midcap closed 0.22% lower, while the BSE small-cap gained 0.18%. The overall market breadth also turned negative on Tuesday as 1,602 stocks advanced and 1,729 scrips declined in the BSE.Broader BSE Midcap closed 0.22% lower, while the BSE small-cap gained 0.18%. The overall market breadth also turned negative on Tuesday as 1,602 stocks advanced and 1,729 scrips declined in the BSE.

Dalal Street gave up gains in the dying hours of trade on Wednesday to close in the red, snapping the two-day gaining streak. S&P BSE Sensex closed 206 points or 0.34% lower at 61,143 while NSE Nifty 50 dropped 57 points or 0.31% to end at 18,210. Bank Nifty closed 363 points lower at 40,874. Midcap and smallcap indices outperformed headline indices and closed in the green. Banking and finance sector stocks along with Reliance Industries were among the top drags on Sensex

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

“Technically, the index has formed a small bearish candle near the 18350 resistance level but at the same time, on intraday charts, it has maintained higher bottom series formation. Ahead of monthly F&O expiry, volatility may continue, hence level based trading would be the ideal strategy for day traders. For the bulls, 18100 would be the key support level and if the index breaches the level, there is a strong possibility of a quick intraday pullback rally up to 18300-18350 levels. On the other hand, dismissal of 18100 could possibly open another round of correction wave up to 18060-18000.”. 

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

“We went very close to 18350 but failed to close above it. If we are unable to do so and also fail to break 18000, the Nifty will become range bound and will trade in a sideways zone. It is a wait and watch situation and traders should avoid directional calls.”

Rohit Singre, Senior Technical Analyst at LKP Securities –

“Index has formed a strong hurdle zone near 18325 zone trading below said levels we may see some more profit booking but if managed to cross said levels decisively then next move towards 18500-18600 zone can’t rule out so fresh long would be suggested above 18325 zone and on the other hand immediate support is coming near 18150-18000 zone also long traders can trail there stop out below 18k mark.”

Sachin Gupta, AVP, Research, Choice Broking –

“Technically, the Index has been trading in a bullish trend with Higher Highs & Higher Lows formation that suggests a bullish strength for the long term.  On a four hourly chart, the index has traded above the Horizontal Line, which indicates a further support zone. Furthermore, the index has been trading with a positive crossover of 9*21 Moving Average, which can be considered a Bullish Crossover which shows a Bullish movement in the counter. At present, the Index has immediate support at 18000 levels while resistance comes at 18380 levels.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Echoing weak global sentiments, domestic indices slipped into negative terrain in today’s choppy trade. Bleeding financial stocks dragged the market despite improvements in asset quality and favourable results. Stagflation worries and flare-up in US-China tensions forced global investors to trade cautiously ahead of the announcement of another batch of Q2 corporate earnings.”

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 100 points  at 18170 after taking resistance at 18340. Nifty has support in 17980 – 18020 range and resistance in 18320-18340 range. Traders are advised to be cautious in long positions and maintain strict stoploss.”

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