The benchmark Indices fell for the fourth consecutive session. Strong selling is seen in Metal and IT stocks while buying is witnessed in Banking and Realty stocks. The Sensex was down 101.88 points or 0.17 percent at 60,821.62. The broader Nifty was down 63.20 points or 0.35 percent at 18,114.90. About 1,205 shares have advanced, 1,865 shares declined, and 119 shares are unchanged.
Among major losers on the Nifty were Hindalco Industries, Coal India, Tata Motors, ITC and Tata Consumer Products. HDFC, Bajaj Auto, Kotak Mahindra Bank, ONGC and Axis Bank were among major losers.
Mohit Nigam, Head - PMS, Hem Securities said, "Macrotech Developers trading positive as the realty firm reported its consolidated net profit at Rs 223.36 crore for the quarter ended September and announced plans to raise up to Rs 4,000 crore through issue of securities. KEC International surged 12 percent to a record high after the company announced that it has secured new orders of Rs 1,829 crore across its various businesses.
"The broader market is witnessing a sell off with the Nifty Midcap index down 0.76 percent and the Small cap index down 1.09 percent. Immediate support for Nifty 50 is 18,000. According to our analysis, if the market is able to sustain the level of 18,000 then we can see a reversal in the market. We believe market direction in the near-term will depend on Q2FY22 earnings and their management commentary, demand in festive seasons and commodity prices," Nigam added.
Shibani Kurian, Senior EVP and Head- Equity Research, Kotak Mahindra Asset Management Company, said, "Equity market in India witnessed volatility during the week ended 22nd October 2021. Going forward, market direction would likely be determined among other factors by demand momentum in the festive season, movement in commodity inflation and, mobility trends. Commentary of companies that are yet to report results of Q2FY22 and institutional flows should be other factors to watch out for market participants."
Palak Kothari, Research Associate, Choice Broking said, "The bears were in the picture throughout the week as after making an all-time high at 18,593.75, the index has been showing downside movement. On the last day of the week, the index opened on a positive note and made an intraday high at 18,314.25 level but didn’t manage to sustain at a higher level and closed the session at 18,114.90 level with a loss of 63.20 points. While bank nifty was trading in green and made a new all-time high at 40587.35 level and closed the session at 40,323.65 level.
"On a technical front, the index has been trading with Lower Highs and Lower Low formation for the last four days, which points out weakness in the counter. However, on an hourly chart, the index has taken support from the middle band of Bollinger formation, which suggests bounce-back movement can be expected. Hourly Momentum Indicator, Stochastic has been bounced from oversold zone and divergence has been seen which points out upside movement can be seen in the index. At present, the Index has immediate support at 18000 level while resistance comes at 18,380 levels," Kothari said.
Deepak Jasani, Head-Retail, HDFC Securities said, "Asian markets rose from the morning levels as beleaguered Evergrande made overdue bond payment. European markets are trading higher helped by an easing of worries surrounding embattled property group China Evergrande as well as positive corporate earnings.
Advance decline ratio dipped to sharply negative from sharply positive in the morning. Nifty ended the week with a loss of 1.22 percent. On a weekly basis, banks (including PSU banks) were the main sectoral gainers while FMCG, Metals, Realty, Pharma and Auto were the largest losers. On weekly charts, Nifty has formed a bearish Dark cloud cover. On falls, 17,948 could be a good support."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd., said, "Technically, on weekly charts benchmark Nifty has formed a bearish candle which supports temporary weakness, although medium-term structure is still positive. We are of the view that for positional traders 20 day SMA or 17,950 would be the key support level. On the flip side, 18,300 and 18,425 may act as a decisive resistance level. For day traders, 18,050 would be the sacrosanct support level and above the same, a pullback rally could be seen up to 18,300-18,350 levels. On the flip side, dismissal of 18,050 could trigger one more leg of correction up to 18000-17975. Contra traders can take a long bet between 17,975 to 17,950 with a strict support stop loss at 17,900. Meanwhile, the Bank Nifty has continued promising breakout continuation formation. According to daily charts, the key support levels for Bank Nifty are placed at 39,200 and 38,800, and the structure suggests further upside if it succeeds to trade above 39,200."
