On the monthly expiry day, the Nifty Index began on a firm note, briefly moving above the psychological mark of 26,000, but failed to sustain momentum and drifted lower, making an Intraday low of 25,810 before a sharp surge towards the last hour of the day led to Nifty closing the day at 25,936 with a modest loss of 0.11%
On the sectoral front, Nifty Metal was the top sectoral gainer, ending with a gain of 1.23%, followed by Nifty PSU Banks, which ended with a gain of 1.21%. On the other hand, Nifty Realty & Nifty CPSE were the top two sectoral losers. On the stock front, JSW Steel and Tata Steel ended up as the top gainers, while Bajaj Finserv and Trent emerged as the top two losers.
The broader market indices relatively outperformed the frontline indices. Midcap Index ended 0.02% lower while the Smallcap Index closed the day with a modest gain of 0.02%. The advance-decline ratio was tilted in the favour of the bears as a total of 274 stocks out of the Nifty 500 closed in the red, indicating that the selling pressure was broad based and not just limited to heavyweight names.
Nifty View
On the daily chart, the Nifty Index has formed a small-bodied candle with a minor upper shadow and a long lower shadow, indicating indecision amongst the market participants throughout the day.
For the past two sessions, Nifty has been struggling to decisively move past the 26,000–26,050 zone, which now acts as a near-term hurdle. Post the symmetrical triangle breakout on October 16 and a strong follow-through rally on October 17, the index has entered a consolidation phase, moving within a 25,700–26,100 range.
From an indicator standpoint, the prices continue to trade above key moving averages, keeping the broader trend positive. The RSI has cooled off from 72.69 on 23rd October to 70.03 on 28th October, indicating that momentum has eased slightly and the index is digesting recent gains rather than reversing trend. Meanwhile, the ADX remains in a rising mode, reflecting that the underlying bullish strength is still intact despite the current consolidation.
Overall, Nifty appears to be taking a breather after a strong breakout. Looking at key levels, the zone of 26,050-26,100 will act as an immediate resistance for the Index. If the index manages to give a follow through move above the level of 26,100, then the rally can continue further till 26,300 level. While, on the downside, the zone of 25,750-25,700 will act as a crucial support for the Index.
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