The market ended lower due to profit-booking in the final hour of the trade on October 27, snapping two days of gains.
Losses in metal and banking and financial names such as HDFC Bank, Axis Bank, Bajaj Finance and Bajaj Finserv amid weak global cues dragged the market lower.
At close, the Sensex was down 206.93 points, or 0.34 percent, at 61,143.33, and the Nifty was down 57.40 points, or 0.31 percent, at 18,211.
The Nifty opened with a small gap but was unable to sustain the high to close the day at 18,210 percent and again formed a bearish candle on the daily chart, said Rohit Singre, Senior Technical Analyst at LKP Securities.
“The index has formed a strong hurdle zone near 18,325 zone and trading below said levels, we may see some more profit-booking, but if manages to cross the said levels decisively, then next move towards 18,500-18,600 zone can’t be ruled out,” Singre said.
Fresh long are suggested above 18,325. Immediate support is near 18150-18000 zone and traders can trail there stop out below 18,000, he added.
The broader indices BSE midcap and smallcap ended flat.
Asian Paints, UPL, Divis Labs, Infosys and Cipla were among the major Nifty gainers. Losers included Axis Bank, Bajaj Finance, ONGC, Tata Motors and Bajaj Finserv.
On the sectoral front, selling was seen in the auto, energy, infra and metal names, while PSU, FMCG, IT and pharma indices rose 0.3-2 percent.
Stocks and sectors
On the BSE, metal names and Bankex ended a percent down each, while the IT index rose a percent and healthcare index 0.6 percent.
More than 150 stocks, including Bank of Baroda, Arvind and Tanla Platforms, hit a 52-week high on the BSE.
More weakness can be expected in Nifty if it slips below 18,099 in the next trading session. In such a scenario, the index may eventually head to test the recent corrective swing low of 17,968 levels, said Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.in.
“Contrary to this, intraday strength can be expected if the index sustains above 18,342 levels and in such a scenario, the strength shall initially get extended towards 18,468 levels,” Mohammad said.
With monthly expiry on October 28, traders should remain neutral as markets may see choppy trade, he said.
Outlook for October 28
Rahul Sharma, Co-Founder, Equity99
With monthly expiry, we expect good movement in the market on October 28. It is also the ex-date for the IRCTC stock split, which has been making a good move recently.
Traders are advised to move with strict targets and stop loss. We recommend dips be bought in quality stocks.
Considering the movement in the market and the expiry, 18,160 will act as top support followed by 18,050 and if these levels are broken, the Nifty can slide to 17,950.
On the upper side, 18,280 will act as strong resistance but it broken, it can lead the index to 18,350-18,400.
Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas
The rise in the last couple of sessions is showing overlapping structure on the hourly chart. This means that it is a part of the consolidation process.
On the downside, the Nifty can revisit the crucial 18,000-mark where it is expected to take support near the 20-DMA.
On the higher side, the day’s high of 18,342 will act as a near-term barrier. Overall, the Nifty is expected to continue with the short-term consolidation
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