SHARP INTRADAY DECLINE, BROKEN DOWN ITS SUPPORT LEVELS DECISIVELY

NIFTY:

The NIFTY opened at 19521.60 with a gap down of just 21 points. Initially, prices moved sideways for about one hour and then broke it on the downside after recording its intraday high at 19556.85. Prices have slowly moved downward and then again started a consolidation process in the afternoon. That range again broke on the downside and this time prices moved down more sharply. The decline picked up the pace toward the end, as prices have moved down almost 200 points in the last hour of trading. The index recorded its intraday low at 19257.85 and finally closed at 19281.75 with a loss of 260.90 points or 1.34% down. All the sectoral indices have moved down and closed with a loss. MEDIA led the bears as the sector ended almost 5% lower followed by METAL REALTY, OIL GAS, and IT. Fresh support is now visible around 19250 while resistance is visible around 19500. The index is trading very near to the support levels.

BANK NIFTY:

The BANK NIFTY opened at 43822.70 with a gap up of 82 points. The index initially moved sideways and then moved down after recording its Intraday high at 43831.30. Prices have again formed a trading range and eventually broke it on the downside. The index has seen a sharp decline in the last hour of trading, recorded its intraday low at 43029.45, and finally closed at 43186 with a loss of 554 points. PSU BANK has underperformed, saw a sharp intraday decline, and ended with a loss of 3.77% PVT BANK has also moved down and closed with a loss of 1.43% Within the index, in terms of points, HDFC BANK contributed the highest on the downside followed by KOTAK BANK. The short-term trend is down now as the index has broken down decisively its support level of around 43500. Fresh support is now visible around 42500 while resistance is visible around 4400. We should look for short only as far as prices are moving below 44000 resistance.

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News Updates

• India’s benchmark stock indices declined through Monday as broader indices dragged the market. Media, metal, banks and realty sectors corrected the most. Sensex ended at its lowest level since June 30, while Nifty slipped to the lowest level since Sept. 1.

• India’s New Delhi Television Ltd (NDTV), part of the Adani Group, reported a nearly 51% drop in second quarter profit on Monday, as businesses cut back on advertising spending in the face of rising interest rates. Consolidated net profit was 59.1 million rupees ($710,803.00) in the three months to Sept. 30, compared with 120.1 million rupees a year earlier, it said in an exchange filing.

• JSW Steel expects higher coking coal costs in the third and fourth quarter, but is confident that its impact on margins will be partly offset by price increases that it undertook in August, September, and October, joint managing director and chief executive officer Jayant Acharya told Moneycontrol in an interview on Friday.

• On a day of strong selling across the board, pharma stocks ended mixed as stock-specific triggers guided sentiment on October 23. While most pharma stocks were muted, a select few made it to the list of top gainers and losers.

Source: Economic Times,  Indian Express, Business, Livemint, Business Standard, Bloomberg Quint

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