Market Outlook
Ruchit Jain,
Lead Research, 5paisa.com
Mumbai, 18 October 2023: Our markets witnessed a sharp correction on Wednesday led by the Banking stocks, while the broader markets too witnessed some profit booking. The Nifty index ended below 19700 to end with a loss of seven-tenths of a percent while the banking index saw cuts of over a percent.
In last few sessions, we had seen a gradual recovery in the Nifty index towards its resistance of 19850. Both Nifty as well as the Bank Nifty index were placed around their crucial hurdles of 19850 and 44600 respectively. While market participants were looking for a breakout, the indices witnessed a reversal from these hurdles and decent short formation in the banking index dragged the indices lower. Thus, 19850 now becomes a crucial hurdle and until this is surpassed, the markets could continue its choppiness. On the lower side, 19635 followed by 19500-19450 range will be seen as the immediate support levels. The RSI oscillator in the Bank Nifty index has given a negative crossover and thus, then momentum there could be on the negative side. Until we see any strength in the banking space again, traders should turn cautious and avoid aggressive trading for directional moves.
The broader markets too witnessed some selling pressure today. However, the Nifty Midcap index is still in a time-wise corrective phase within an uptrend since last one month. On this index, 39600 will be seen as a crucial support on any declines.
