On October 22, the Nifty fell below 24,500 due to a combination of dismal sectoral performance, extended selling in the wider markets, and unfavorable global indications. In closing, the Nifty was down 309.00 points, or 1.25 percent, at 24,472.10, while the Sensex was down 930.55 points, or 1.15 percent, at 80,220.72. The BSE Smallcap index fell 3.8%, while the Midcap index fell 2.5%.
On the Nifty, ICICI Bank, Nestle India, and Infosys were among the top gainers, while Adani Enterprises, M&M, Bharat Electronics, Coal India, and Tata Steel came in last. With auto, capital goods, metal, power, real estate, telecom, media, and PSU bank all down 2-3 percent, all sectoral indices ended the day in the red.
With no pullback move and a general decline caused by the mid and smallcap categories, the Index compounded its losses throughout the day to close the trading at 24,472.10, down 309 points. PSU Banks and Realty were the biggest laggards, and the whole sector ended in the negative.
The Bank Nifty, which had been holding steady until yesterday, also experienced a significant decline and intense selling pressure. We anticipate that the banking equities will also be impacted by weakening. Support is positioned at 51000 on the downside, below which it may move towards 50200. 51800–51900 will serve as an instant obstacle zone on the upswing.
The Index has made another bearish candle in the sequence of lower highs and lower lows, suggesting that the bear’s hold is getting tighter. Given the oversold conditions in the Mid and Smallcap divisions, a brief market rebound is anticipated, which might raise the Index; nevertheless, the upside appears to be limited to around 24,670. On the other hand, the Index is near its support zone, which is between 24,370 and 24,430.
