Nifty holds above 17,500, falls 2% this week; here’s what analysts make of today’s trade

In line with global markets, Sensex 30 and Nifty 50 saw a decline this week.

BSE Sensex and Nifty 50 ended with losses for the fourth consecutive day on Friday. On a weekly basis, headline indices have fallen nearly 2 per cent. On Friday, BSE Sensex ended 361 points or 0.6 per cent down at 58,766, while the Nifty 50 index fell 86 points or 0.5 per cent to settle at 17,532. Index heavyweights such as Housing Development Finance Corporation (HDFC), ICICI Bank, HDFC Bank, Tata Consultancy Services (TCS), and Bajaj Finance contributed the most to the indices loss today. In the broader markets, smallcap index ended in the positive territory, rising half a per cent to settle at 28,216. BSE MidCap index, however, settled flat with a negative bias, down at 25,224.20 apiece. India VIX, the volatility index, cooled off 6.48 per cent to finish at 17.21 levels.

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Rohit Singre, Senior Technical Analyst, LKP Securities

The index closed a week at 17532 with a loss of nearly two percent and formed a bearish candle on the weekly chart. on daily chart, index formed a Doji candle pattern on Friday session which hints indecision in the markets, going forwards index has formed supports near 17450-17400 zone if managed to sustain above-said levels one can expect a decent pullback towards immediate & strong hurdle zone of 17620-17740 where one can lock immediate profit in longs also the overall range for the nifty is coming in between 17300-18000 zone.

Vinod Nair, Head of Research, Geojit Financial Services

Despite favourable growth India’s core sector output, which accelerated by 11.6% in August from 9.9% in July, domestic indices were in red reflecting weak global cues and losses in heavyweights. High Eurozone inflation at 3.4% in September, slowing global growth and the existing Chinese crisis bolstered global sell-off. The auto sector is hold-on despite weak sales, in anticipation of festival demand, as numbers from major manufacturers showed a fall in September sales mainly due to semiconductor supply shortage.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed some lackluster movement and an attempt to hold the level around the Nifty 50 Index level of 17450. 17550-17600 will not act as a resistance for the market. It may witness a further correction in the market to continue till the levels of 17300-17350. Technical indicators suggest a volatile movement in the market. The traders to refrain from building a new buying position until further improvement in the market breadth.

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

Global markets once again dictated trends and cautious investors took the opportunity to book profits as benchmark Nifty witnessed selling pressure near the 17900 resistance level. After a spectacular rally last week, the index has formed a bearish candle and on intraday charts, it has maintained lower top series formation which indicates temporary weakness. While the market will remain volatile in the near future, the 17650-17750 level would be the key resistance level for traders while 17400-17300 could act as sacrosanct support for positional traders. Contra traders may take contra bet near 17300 support with strict support stop loss at 17250. On the flip side, partial profit booking is advisable between 17650 to 17750 levels. Meanwhile, Bank Nifty is currently trading near the important support level of 36750 and it also completed one leg of correction. Key support levels for Bank Nifty are 36800 followed by 36200, and the structure suggests further upside if it succeeds to trade above 36800.

Palak Kothari, Research Associate, Choice Broking

On the technical front, the Index has given a breakdown of the rising trendline and given closing below the same, which suggests some correction can come. On a daily chart, the index has been trading with lower high, lower low formation, which indicates weakness in the counter. Moreover, the index has started to trade below 21 DMA, which adds weakness to the counter. At present, the Nifty has immediate support at 17400 while resistance comes at 17750 levels.