After The Bell: Nifty holds 17,500 on first day of October series! What should investors do on Monday?

Indian markets closed in the red for the fourth consecutive day in a row on Friday. Bulls managed to push the Nifty50 above 17,500 levels, while the S&P BSE Sensex fell more than 350 points on the first day of October series.

Let’s look at the final tally on D-Street – the S&P BSE Sensex was down 360 points to 58,765, while the Nifty50 closed 86 points lower at 17,532.

 

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Weak global cues overshadowed positive macro data on Friday. The Nifty50 fell 1.8 percent, while the S&P BSE Sensex closed with losses of over 2 percent for the week ended October 1.

"Despite favourable growth India’s core sector output, which accelerated by 11.6% in August from 9.9% in July, domestic indices were in red reflecting weak global cues and losses in heavyweights,” Vinod Nair, Head of Research at Geojit Financial Services, said.

“High Eurozone inflation at 3.4% in September, slowing global growth and the existing Chinese crisis bolstered global sell-off,” he said.

Sectorally, buying was seen in consumer durable, metal, healthcare, and oil & gas space while selling pressure was seen in realty, telecom, finance, and IT stocks.

On the broader market front – the S&P BSE Mid-cap index fell 0.1 percent while the S&P BSE Small-cap index was up 0.4 percent.

India VIX fell by 6.47% from 18.40 to 17.21 levels. Overall, spurt in India VIX is giving a volatile swing but decline in volatility in the last two sessions may give some consolidation, suggest experts.

We have collated views from different experts as to what investors should do when trading resumes on Monday:

Expert: Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited

The Nifty50 formed a Doji sort of candle with a long lower shadow on a daily scale and has been forming lower highs from the last five sessions.

It formed a Bearish candle on the weekly scale but continued its sequence of higher lows of the last nine weeks.

Now, the index has to hold multiple support of 17550-17580 zones, for an up move towards 17777 and 17850 levels whereas support is seen at 17450 and 17350 zones.

Expert: Rohit Singre, Senior Technical Analyst at LKP Securities.

The Nifty50 index closed the week at 17532 with a loss of nearly two percent and formed a bearish candle on the weekly chart.

On the daily chart, the index formed a Doji candle pattern on Friday session which hints indecision in the markets, going forwards index has formed supports near 17450-17400 zone.

If it manages to sustain above the said levels, then one can expect a decent pullback towards the immediate strong hurdle zone of 17620-17740 where one can lock immediate profit in longs also the overall range for the nifty is coming in between 17300-18000 zone.

Expert: Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd

Global markets once again dictated trends and cautious investors took the opportunity to book profits as benchmark Nifty witnessed selling pressure near the 17900 resistance levels.

The market will remain volatile in near future. The level of 17650-17750 level would be the key resistance level for traders while 17400-17300 could act as sacrosanct support for positional traders.

Contra traders may take contra bet near 17300 supports with strict support stop loss at 17250. On the flip side, partial profit booking is advisable between 17650 to 17750 levels.

Meanwhile, Bank Nifty is currently trading near the important support level of 36750 and it also completed one leg of correction.

Key support levels for Bank Nifty are 36800 followed by 36200, and the structure suggests further upside if it succeeds to trade above 36800.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)