On Monday, September 30, the Indian stock market was affected by profit booking in index heavyweights like Reliance Industries and banking counters, as well as a decline in Japan’s Nikkei index. The S&P BSE Sensex and the benchmark Nifty 50 index both decreased 1.5% to 25,810.85 and 84,299.78, respectively. Following China’s stimulus news and better-than-expected industrial figures, only the metals pack showed strength. The majority of indexes saw a decline at the close, with the Bank Nifty closing at 52,978.10, down 1.5%.
Tuesday’s trade setup
On Monday, the Nifty fell and created a lengthy bearish candle. There were no indications of a notable intraday comeback. According to Deepak Jasani, Head of Retail Research at HDFC Securities, the Nifty has showed indications of a trend reversal and may drop shortly. According to Jasani, the 25,956-26,011 zone may provide resistance for Nifty in the near run, while 25,446 may provide support.
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher, stated that Bank Nifty has lost part of its gains from the top zone of 54,467 levels in the recent two sessions, but it still has support in the 52,300 zone for the near term. According to Parekh, a further breach below this level will undermine the overall bias, with the next significant support being around 51,300 levels.
Outlook for Global Markets
The week began with a tumultuous start for Asian markets, with China’s stocks surging on the prospect of extra stimulus for the struggling economy, and Tokyo’s Nikkei 225 index falling by about 5%. On Monday, September 30, European stock markets fell as investors took in a number of regional economic reports and the different results of the main Asian indices.
After one side move during the past several weeks, Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, anticipates a near-term consolidation of the market. According to Khemka, as businesses are starting to release their pre-quarterly updates this week, the sector’s attention may move to IT and banking.
Choice Broking’s Executive Director Sumeet Bagadia has suggested two stocks for Tuesday. In addition, Anand Rathi’s Senior Manager of Technical Research, Ganesh Dongre, has provided three more stock recommendations for today.
Among them are Whirlpool of India, Reliance Industries, HDFC Life Insurance Company, Whithy Labs, and Larsen & Toubro.
