Dalal Street Corner: Markets extend losses for 4th session in row; what investors should do on Monday

The markets on Friday extended losses for the fourth straight session amid selling pressure, as the Nifty and the Sensex closed lower, while the Nifty Bank ends in the green, hitting a fresh record high; while the midcap index’s underperformance continues, down 1 per cent below the 31000-mark. 

The analysts estimate the reason for the continued decline is mostly mute second-quarter earnings. In this regard, Geojit Financial Services Head of Research Vinod Nair said, “The Indian markets are impacted by muted Q2 results, which are weak than forecasted due to high input cost.”

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According to him, the markets opened positive owing to positive global markets as the investors welcomed a surprise interest payment by China’s debt-ridden major property developer.

While LKP Securities’ Senior Technical Analyst Rohit Singre pointed out, "Index closed a week at 18114 with loss of more than one percent on weekly basis and formed a dark cloud cover candle pattern on weekly chart, which is bearish reversal candle pattern by nature so if we slipped below the 18000-mark we may see short-term reversal in the index.” 

“The index has formed consecutive bearish candles throughout this week, which hints bears are trying to grip the market from higher levels, which will be possible if the index falls below the 18000-mark in the coming week”, Singre further said, while mentioning weekly charts movement.

The immediate support for the Nifty is coming near the 18000-mark, followed by the 17950 zone if the index managed to hold above the 18000-mark one can expect a swift pullback and resistance is coming near the 18250-18350 zone, the technical analyst said in his note on Friday.

Similarly, Religare Broking Ltd VP - Research Ajit Mishra mentioned, “Markets will react to the Reliance and ICICI Bank results in early trade on Monday. Besides, global cues and movement in crude oil prices would be actively tracked. On the benchmark front, we expect Nifty to find support around 17,950 zone while 18,200-18,400 zone would act as a hurdle.”

“Equity market in India witnessed volatility during the week ended 22nd October 2021. However, the improvement in high-frequency domestic economy indicators continued with the further opening up of the economy and the level of vaccinations crossing the 1 billion mark, Kotak Mahindra AMC Senior EVP & Head- Equity Research Shibani Kurian said while citing a positive fundamental.