Om Mehra, Technical Associate at Choice Broking
The Indian market takes another step lower, chasing the global nod. Investors remained nervous as the RBI may follow the lead of global counterparts, including the US Federal Reserve, and raise interest rates on Friday to tame stubborn inflation. The rupee fell 0.68 percent against the US dollar on Monday, reaching a new low of 81.66.
In the short-term, markets can remain volatile following the global macroeconomic uncertainty and rising interest rates. Nifty has breached psychological 17000 levels, as 17250-17320 will now act as immediate resistance, whereas support is placed around the 16800 levels.
Ajit Mishra, VP - Research, Religare Broking:
Markets slumped sharply lower and lost nearly 2%, in continuation of Friday’s decline. Weak global cues weighed the sentiment in the early trades, leading to a gap-down start, followed by volatile swings till the end.
Finally, the Nifty index settled closer to the day’s low to close at 17,016 levels. The selling pressure was widespread and all the sectoral indices, barring IT, ended deep in the red. The broader indices also traded in tandem with the trend and lost over 3% each.
With no respite on the global front and a resumption of selling from foreign investors, we expect markets to remain under pressure and test the 16,800-16,900 zone in Nifty. Select pockets from FMCG, pharma and IT are showing resilience while the majority are reeling under pressure. Participants should align their positions accordingly.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty has been in a short term correction mode for the last couple of weeks. On September 26, it had a gap down opening on account of the global cues & had a follow through selling as well. On the way down, it breached the August swing low of 17166. The selling pressure was absorbed near the 200 DMA.
The index also has a support from a gap area of 16947-17018, which was formed in July on the daily chart. The index attempted an intraday bounce thereon however couldn’t have a sustainable recovery. On the higher side, 17200 is acting as a near term hurdle. On the flip side, if the Nifty breaches the gap area, then it can continue to slide till 16800.
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