The Indian stock market is expected to have a slow start on Wednesday, October 23, as global cues remain mixed. The Gift Nifty was trading slightly higher, showing a small gain of 10 points from the previous close of Nifty futures, hinting at a muted opening for the Indian markets.
Recap of Tuesday’s Market Action
On Tuesday, both Sensex and Nifty 50 suffered significant losses, with the Sensex falling 930.55 points (1.15%) to close at 80,220.72, and the Nifty 50 dropping 309 points (1.25%) to finish at 24,472.10. The Nifty 50 formed a strong bearish candle on the daily chart, which shows a possible downside breakout near the 24,600 – 24,500 levels.
What Analysts Are Saying
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said Nifty 50 is showing signs of weakness after forming a new lower top at around 25,230 levels. This suggests a downward correction, with key support levels at 24,500 at risk of breaking. If this support fails, Nifty could slide towards 24,000. Any short-term recovery up to 24,700 should be viewed as a chance to sell.
Nifty 50 Outlook
Hardik Matalia, Derivative Analyst at Choice Broking, shared that Open Interest (OI) data shows strong resistance for Nifty at 24,600 and 24,700, while support is around 24,400 and 24,300.
Dr. Praveen Dwarakanath from Hedged.in noted that call writing above 24,500 suggests more downside pressure, as put options are being unwound.
Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth, expects Nifty to face resistance at 24,700 – 24,840. He recommends reducing long positions and increasing shorts at those levels, with the index potentially moving towards 24,000.
Jatin Gedia from Sharekhan by BNP Paribas added that momentum indicators also show weakness. He believes Nifty could head towards 24,000, with resistance between 24,900 and 25,000 in the short term.
Bank Nifty Outlook
On Tuesday, the Bank Nifty index dropped 705.55 points (1.36%) to close at 51,257.15, forming a long bearish candle. Aditya Agarwal said Bank Nifty has immediate support at 51,000 / 50,800, with resistance at 52,000 / 52,250. Profit booking is likely to occur around those resistance levels.
Dwarakanath added that options data show strong resistance at 51,500 before the monthly expiry, indicating further downside.
VLA Ambala, Co-Founder of Stock Market Today, warned that selling pressure could continue, advising a ‘sell on rise’ approach as the market remains overbought. She expects Nifty to find support around 24,320 and 24,000, with resistance at 24,510 and 24,585.
Key Levels to Watch
- Nifty 50 Support: 24,000 – 24,320
- Nifty 50 Resistance: 24,510 – 24,700
- Bank Nifty Support: 51,000 – 50,800
- Bank Nifty Resistance: 52,000 – 52,250
Traders should keep an eye on these levels and consider a cautious approach, given the ongoing market weakness.
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