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Market may slide further this truncated Diwali week, Nifty has support at 17,550: Experts

We are seeing profit taking for the last two weeks and indications are pointing towards a further slide. Nifty has immediate support at 17,550 and its breakdown may push the index to the 17,350 zone, says Ajit Mishra, VP - Research, Religare Broking.

November 01, 2021 / 08:49 AM IST
Market lost over 2 percent last week extending the fall to the second straight week amid continuous FII selling, weak global markets, F&O expiry and mixed Q2 earnings from the India Inc. In the last week, BSE Sensex fell 1,514.69 points (2.49 percent) to close at 59,306.93, while the Nifty50 shed 443.2 points (2.44 percent) to close at 17,671.7 levels. However, in the month of October Sensex and Nifty added 0.30 percent each.
Market lost over 2 percent last week extending the fall to the second straight week amid continuous FII selling, weak global markets, F&O expiry and mixed Q2 earnings from the India Inc. In the last week, BSE Sensex fell 1,514.69 points (2.49 percent) to close at 59,306.93, while the Nifty50 shed 443.2 points (2.44 percent) to close at 17,671.7 levels. However, in the month of October Sensex and Nifty added 0.30 percent each.
Rohit Singre, Senior Technical Analyst at LKP Securities | On daily chart index reached to its good support zone 17600-17500 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.
Rohit Singre, Senior Technical Analyst at LKP Securities | On daily chart index reached to its good support zone 17600-17500 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 | We are seeing profit taking for the last two weeks and indications are pointing towards a further slide. Nifty has immediate support at 17,550 and its breakdown may push the index to the 17,350 zone. In case of any rebound, it would face hurdles around 17,950-18,100 levels. Keeping in mind the prevailing trend and excessive volatility, it’s prudent to maintain extra caution in the selection of stocks and prefer hedged positions.
Ajit Mishra, VP - Research, Religare Broking | We are seeing profit taking for the last two weeks and indications are pointing towards a further slide. Nifty has immediate support at 17,550 and its breakdown may push the index to the 17,350 zone. In case of any rebound, it would face hurdles around 17,950-18,100 levels. Keeping in mind the prevailing trend and excessive volatility, it’s prudent to maintain extra caution in the selection of stocks and prefer hedged positions.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | If we break 17550-17500, sell signals would get activated which can drag the index down to 17200. On the upside 17900 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.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | If we break 17550-17500, sell signals would get activated which can drag the index down to 17200. On the upside 17900 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.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Markets have corrected almost 5% from its all-time high and should now see some stability going forward. Its good time for investors to start accumulating quality stocks. Due to the festival of Diwali, markets will have a truncated 3 day trading session next week. India’s manufacturing and services key events to watch out next week will be India’s PMI data for the month of October and US Fed meeting which will provide some direction to the market.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Markets have corrected almost 5% from its all-time high and should now see some stability going forward. Its good time for investors to start accumulating quality stocks. Due to the festival of Diwali, markets will have a truncated 3 day trading session next week. India’s manufacturing and services key events to watch out next week will be India’s PMI data for the month of October and US Fed meeting which will provide some direction to the market.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | Going ahead, since the market is a bit oversold, we may see some relief move in between; but traders should not get carried away by such rebounds. On the higher side, 18000 – 18100 would now be seen as immediate hurdles and any bounce back towards it, should be used to lighten up longs. On the flipside, we may see this corrective move extending towards 17450 first and if things worsened then the possibility of sliding towards 17200 – 17000 cannot be ruled out. We reiterate on staying light and avoiding any kind of bottom fishing for a while.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | Going ahead, since the market is a bit oversold, we may see some relief move in between; but traders should not get carried away by such rebounds. On the higher side, 18000 – 18100 would now be seen as immediate hurdles and any bounce back towards it, should be used to lighten up longs. On the flipside, we may see this corrective move extending towards 17450 first and if things worsened then the possibility of sliding towards 17200 – 17000 cannot be ruled out. We reiterate on staying light and avoiding any kind of bottom fishing for a while.
Yesha Shah, Head of Equity Research, Samco Securities | Although the trading week ahead will be shorter than usual, it can undoubtedly be eventful. The news flow and market sentiment may be largely dominated by the upcoming FOMC meeting. While investors appear to have priced in the possibility of tapering by mid-November, the focus will now shift to the timing of interest rate hikes in light of the looming threat of inflation. Indian automakers will report their monthly sales figures. Despite the advent of the festive season, shortages of semiconductors, rising freight and commodity prices may continue to squeeze margins and weaken sales.
Yesha Shah, Head of Equity Research, Samco Securities | Although the trading week ahead will be shorter than usual, it can undoubtedly be eventful. The news flow and market sentiment may be largely dominated by the upcoming FOMC meeting. While investors appear to have priced in the possibility of tapering by mid-November, the focus will now shift to the timing of interest rate hikes in light of the looming threat of inflation. Indian automakers will report their monthly sales figures. Despite the advent of the festive season, shortages of semiconductors, rising freight and commodity prices may continue to squeeze margins and weaken sales.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities | we are of the view that the short term trend remains weak due to the oversold situation in the market. The weekly trading set up suggests 17800 would be the immediate hurdle for Nifty. If it succeeds to trade above the same, we can expect a pullback rally up to 17920-18000-18070. On the flip side, below 17800, the correction wave may continue up to 17600-17500-17420 levels.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities | we are of the view that the short term trend remains weak due to the oversold situation in the market. The weekly trading set up suggests 17800 would be the immediate hurdle for Nifty. If it succeeds to trade above the same, we can expect a pullback rally up to 17920-18000-18070. On the flip side, below 17800, the correction wave may continue up to 17600-17500-17420 levels.
Rakesh Patil
first published: Nov 1, 2021 08:29 am

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