F&O Manual | Bears tighten grip; Nifty struggles at 19,400

Among individual stocks, auto stocks Bank of Baroda, Axis Bank and PNB saw a bearish build-up, while AdaniEnt and HDFC Bank saw a bullish set-up.

The equity markets continue to grapple with the uncertainties stemming from negative global sentiment. The US stock market saw a substantial downturn, with the Dow Jones Industrial Average slipping into negative territory year-to-date low.

This downturn has cast a shadow on Asian markets, which have subsequently followed suit by trading in the negative. The primary catalyst for these losses can be attributed to the surge in Treasury yields, prompting concerns about the potential impact of higher interest rates on the housing market and the looming threat of an economic recession.

With the exception of the FMCG sector, all other sectoral indices are trading in the red, with auto, power, bank, metal and realty each witnessing a 1 percent decline.

As per analysts, Nifty witnessed a weak opening session dragging down by more than 400 points to take support near the 19,350 zone. The decisive breach below 19,500 shall further weaken the trend with the next level of 19,200 as the major support zone.

As per Prabhudhas Lilladher, "The support for the day is seen at 19,350 levels while the resistance is seen at 19,600 levels"

Anand James, Chief Market Strategist at Geojit Financial Services, stated "As the bears exert their influence, the likelihood of a downward move towards 18,600 becomes more pronounced. However, we hold optimism for the possibility of a recovery if the Nifty manages to climb back above 19,460 after its initial weakness. On the contrary, if it fails to surpass the 19,540 level during any rebound, the downward movement could persist, with a lower limit not surpassing 19,340."

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Among individual stocks, auto stocks Bank of Baroda, Axis Bank and PNB saw a bearish build-up, while AdaniEnt and HDFC Bank saw a bullish set-up.

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