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Taking Stock: Profit booking on 3rd day drags Nifty below 17,700, Sensex falls 677 pts

The broader indices has outperformed the benchmarks with BSE midcap gaining 0.16 percent, while smallcap index falling 0.38 percent.

October 29, 2021 / 04:47 PM IST

Benchmark indices fell 1 percent and extended the profit booking on the third straight session on October 29.

The market started the November series on weaker note, but manages to erase all the losses during the day, but ended on negative note amid selling seen in the IT, energy, private banking names and continued FIIs selling.

At close, the Sensex was down 677.77 points or 1.13% at 59,306.93, and the Nifty was down 185.60 points or 1.04% at 17,671.70.

For the week, BSE Sensex and Nifty50 lost over 2 percent each, while for the month of October the benchmark indices ended marginally higher.

"The domestic market continued to witness selling as energy and private bank stocks remained under pressure following dull global sentiments," said Vinod Nair, Head of Research at Geojit Financial Services.

Close

"European markets opened weak even as the ECB decided to keep policy rates unchanged despite the inflationary pressure."

"US futures are trading in red following slow GDP growth and disappointing earnings from tech giants. Decisions of the Fed in its meeting next week will be a major factor that will drive global equities in the coming days," Nair added.

The broader indices has outperformed the benchmarks with BSE midcap gaining 0.16 percent, while smallcap index falling 0.38 percent.

IndexPricesChangeChange%
Sensex54,307.5618.95 +0.03%
Nifty 5016,225.5510.85 +0.07%
Nifty Bank34,223.20-24.40 -0.07%
Nifty 50 16,225.55 10.85 (0.07%)
Tue, May 24, 2022
Biggest GainerPricesChangeChange%
M&M941.900.00 +0.00%
Biggest LoserPricesChangeChange%
JSW Steel547.550.00 +0.00%
Best SectorPricesChangeChange%
No Best Sector details available.
Worst SectorPricesChangeChange%
No Worst Sector details available.

Tech Mahindra, NTPC, Kotak Mahindra Bank, IndusInd Bank and L&T were among the major Nifty losers. Gainers included UltraTech Cement, Maruti Suzuki, Cipla, Dr Reddy’s Laboratories and Shree Cements.

Mixed trend saw on the sectoral front, with Nifty metal, pharma, PSU bank and auto indices ended in the green, while Nifty Bank, Energy, IT indices fell 1 percent each.

Stocks and sectors

On the BSE, IT and bankex indices fell 1 percent each, while auto, healthcare and realty indices ended in the green.

Among individual stocks, a volume spike of more than 100 percent was seen in Canara Bank and Voltas.

Long buildup was seen in Bharat Electronics, Indiabulls Housing and Sun TV Network, while short buildup was seen in ITCTC, NTPC and RBL Bank

More than 100 stocks, including Canara Bank, TVS Motor Company and Escorts, hit a 52-week high on the BSE.

Technical View

Nifty50 registered a spinning top kind of indecisive formation as it recoiled after nearing its 50 day moving average whose value for next trading session is placed around 17,550 levels, said Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.in.

As trend seems to have decisively tilted in favour of bears for the near term a close below 17550 shall open up bigger cuts with target placed close to 16900 levels, he said.

For time being, as Nifty is trading close to its 50-day moving average, it looks prudent to wait for some signs of strength to play pull back rally on long side, where as breach of 17550 can open up a shorting opportunity, Mohammad said.

Outlook for November 1

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

The markets have closed at a crucial point. Today's low of the Nifty has become a support for the short term trend.

If we break 17,550-17,500, sell signals would get activated which can drag the index down to 17,200.

On the upside 17,900 is a stiff resistance and any expectations of trading on the long side will only emerge post this level. Stops are wide and traders should exercise extreme caution.

Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research

Our research shows that it is going to be crucial in the short-term for the market to sustain above the 17,600 support zone.

If the market is unable to sustain the level of 17,600, we can witness lower levels of 17,250-17,300. Technical indicator suggests, a volatile movement in the market.

Rohit Singre, Senior Technical Analyst at LKP Securities:

On daily chart index reached to its good support zone 17,600-17,500 zone. So if mentioned levels survived then one can again expect decent pullback towards 17800-17900 zone, which are the immediate resistance also on the higher side, fresh move only possible above 18k mark.

Ajit Mishra, VP - Research, Religare Broking:

Earnings disappointment combined with feeble global cues is weighing on the sentiment. Apart from the earnings announcements, participants will be closely eyeing the upcoming US Fed meet and auto sales numbers for cues.

Indications are pointing towards further slides, so participants should maintain a cautious approach and prefer a hedged approach.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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Rakesh Patil
first published: Oct 29, 2021 04:47 pm
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