Markets ended as the worst performer in the Asian pack as selling intensified on the expiry day. After a weak opening, benchmark Nifty swiftly broke the important 18,100 support level and retreated sharply thereafter. The Sensex was down 1,158.63 points or 1.89 percent at 59,984.70. The broader Nifty was down 353.70 points or 1.94 percent at 17,857.30. About 887 shares have advanced, 2313 shares declined, and 116 shares are unchanged.
Adani Ports, ITC, ONGC, ICICI Bank and Kotak Mahindra Bank were among the major Nifty losers. Gainers included IndusInd Bank, L&T, UltraTech Cement, Asian Paints and Shree Cements.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Nifty made a extremely bearish bar today. It closed at 17,865 , down by 345 points since Wednesday's (October 27) close. Nifty closed below its support range on 17,980-18,020 , this is a further bearish sign. Nifty can now test its support of 17,800 and any close below 17,800 may take Nifty to 17,600 levels. Traders having long positions should consider booking profits on every rise and keep strict stoploss."
Palak Kothari, Research Associate, Choice Broking, said, "On a monthly expiry day, the Index opened on a negative note and showed weakness through the session and closed the session below 18,000 marks at 17,857.25 with a huge loss of 353 points. The Bank Nifty also traded in red and ended the session at 39,508.95 levels with a loss of 1,365 points. VIX is also closed with a gain of 6.42 percent at 17.91 level.
"On the technical front, the index has given a breakdown of the falling trendline as well as horizontal level which points out weakness in the counter for upcoming days. Additionally, the Index has formed a Bearish Marabozu kind of candle on the daily chart, which points out sellers are quite active. Moreover, the price also moved below the 21 days SMA, which suggests a lower trend for the next trading day. A momentum indicator MACD & Stochastic suggested negative crossover on the daily time-frame, which confirmed a bearish move for the upcoming session. At present, the Index has support at 17,690 level while resistance comes at 18,180 levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "After a long time, the Nifty closed below 20 day SMA which is broadly negative for the market. For day traders, the short-term trend is weak as the market is in an temporary oversold situation but a quick pullback rally cannot be ruled out. The intraday day trade set up suggests 18,000 and 18,050 would be the key hurdle for traders and below the same the correction wave is likely to continue till 17,750-17,700 levels. Contra traders can take a long bet near 17,700 with a strict support stop loss at 17,650."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "Thursday's (October 28) decisive weakness after a range movement could indicate a sharp reversal of near-term uptrend of the market and one may expect further weakness in the coming sessions. The next lower levels to be watched at 17,590-17,550 levels by next week. Any attempt of upside bounce from here could encounter resistance around 18,040 levels."
Deepak Jasani, Head-Retail Research, HDFC Securities said, "Advance decline ratio ended sharply in the negative. FPI unwinding has led to this fall and the adverse A/D ratio. In the latest fall, the Nifty did not take support from the high made on September 24.17,557 on the downside could offer support to the Nifty while 17,968-18,034 could offer resistance. The weakness in Nifty could continue but the pace of fall could now reduce."
