Domestic stocks fell sharply on the monthly F&O expiry day with the NSE Nifty 50 and BSE Sensex falling nearly 1 percent. Not just in India but stocks around the world tanked on September 27 as Brent Crude price surged over $97 a barrel, the most in over 10 months.
Persistently high global interest rates and concerns over China's beleaguered property market further dented investors’ sentiment. Going ahead, analysts believe that the weakness in the market is likely to extend till the worries over the elevated oil prices and higher interest rates remain, posing a risk to the earnings growth trajectory.
Analysts now predict that the Nifty 50 may fall further owing to global turmoil with some expecting the index to test the 19,400 level.
Bank Nifty has formed a long bear candle on the daily scale and declined 287 points to 44,301, the lowest closing level since August 31. Now where is the index headed? Read here
Where is Nifty50 headed?
Nifty may fall to 19,250
Nifty experienced a significant correction today and was unable to hold above 19,750. “On the daily timeframe, the most recent candle has engulfed the bodies of the preceding few days' candles, which suggests a negative sentiment. The prevailing sentiment continues to favour selling during rallies,” said Rupak De, Senior Technical analyst at LKP Securities.
According to Rupak De, Nifty may now move towards 19,250 with immediate support at 19,450 while resistance is positioned at the higher end at 19,600.
Nifty major support at 19,200
After the failed attempt to reclaim 19,750, Ajit Mishra, SVP - Technical Research, Religare Broking, expects Nifty to inch further lower and test 19,400. However, the major support is at 19,200.
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