The benchmark indices fell for the third straight day on September 30, amid F&O expiry. Investors booked profit on the expiry day due to lack of fresh triggers and tepid global cues. Benchmark Nifty was hovering within the range of 17600-17780 and on intraday charts as it had formed a lower top formation which is largely negative. However, the medium-term structure is still positive, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
At close, the Sensex was down 286.91 points or 0.48 percent at 59126.36. The Nifty was down 93.10 points or 0.53 percent at 17,618.20. About 1,804 shares have advanced, 1,393 shares declined, and 149 shares are unchanged.
Power Grid Corp, Axis Bank, Asian Paints, Eicher Motors and Hero MotoCorp were among the major losers on the Nifty. Bajaj Finserv, Bajaj Finance, Sun Pharam, NTPC and Tata Motors were among the gainers.
"Nifty traded in a sideways range on September 30. It closed at 17,618 down by 93 points after taking support in range 17,580-17,620.Nifty is facing resistance in 17,750-17,800 range. Traders will have to look at these levels very closely , break in any direction will cause a sharp movement of 150-200 points in Nifty. Overall the trend in Nifty remains bullish as long as it trades above 17250," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Chouhan said, "The intraday trading setup suggests 17,700 could act as a strong resistance level, and below the same the correction could continue up to 17,500-17,450 levels. On the flip side, beyond 17,700 the immediate hurdle would be the 17,750 level. On the contrary, any revival could lift the index up to 17,800."
Palak Kothari, Research Associate, Choice Broking said, "In the last session of September, the benchmark index struggled to continue its month-long bull run. Nifty PSU managed to settle 0.95 percent positive, whereas NIFTY BANK closed in the red with a loss of 317 points AT 37425.10 levels. Technically, the index has formed a bearish candle on a daily time frame though the index is taking support from 21-DMA. Closing below the same can show a correction in the next trading sessions. Furthermore, the index has been trading below 21 & 50 HMA, which suggests some correction can be seen in the upcoming session. Momentum indicator MACD is also showing negative crossover, which adds weakness in the counter. At present, the Nifty has immediate support at 17,500 while resistance comes at 17,900 levels."
According to Deepak Jasani, Head-Retail, HDFC Securities, "Most global markets rose Thursday after the previous day's retreat, though investors continue to worry that surging inflation will lead to interest rate hikes.
"Nifty has fallen for three consecutive sessions – the longest streak in almost two months. While the Nifty has not fallen with deep cuts and recoveries have been witnessed post-intra day selloffs, the fact that the Nifty closed lower for three straight sessions is a bit unnerving. On weekly charts Nifty fell 1.32 percent for the week after five weeks of gains. 17,576-17,608 is the support band for the Nifty in the near-term. A breach of this band could take it to 17,355, post-which a larger fall may ensue. On rises, 17,781-17,802 could act as a resistance," Jasani added.
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