Sensex, and Nifty closed in red, Nifty breaks 25,000 levels and closed at 24,971
Oct 16, 2024
Mumbai (Maharashtra) [India], October 16 : The benchmark equity indices closed with a lower note on Wednesday after facing selling pressure in the market.
The BSE Sensex closed at 81,501.36, declining 318 points, and Nifty also declined about 86 points, closing at 24,971.30.
Among the top gainers in the Nifty 50 were HDFC Life Insurance, Dr. Reddy's Lab, HDFC Bank, Bharti Airtel, and Grasim Industries. Conversely, Trent, Mahindra & Mahindra, Infosys, Hero MotoCorp, and Adani Ports were among the major laggards.
"Global fund managers are increasing their allocations to China at the expense of India, following China's announcement of a significant stimulus package to bolster its struggling economy. In September, China's central bank implemented aggressive monetary support measures reminiscent of pandemic-era strategies," said Varun Aggrawal of Ideaprofit.
In the banking sector, the index saw a 0.52 per cent rise in open interest (OI) along with a 0.12 per cent positive price close, indicating a buildup of long positions. This marks the first long position accumulation since the recent expiry. The index has formed a higher high and higher low pattern over the past two days, signaling an uptrend, with technical indicators suggesting potential movement.
On the commodities front, geopolitical tensions in the Middle East have spurred safe-haven demand for gold, pushing prices toward USD 2,685 (approximately Rs 76,500).
"After a steep upside movement, the market entered the overbought territory, keeping the smart money on track to back profit booking and fresh investment. Currently, the Nifty and Sensex have now corrected almost 5 per cent and have the potential to continue," VLA Ambala, Co-founder of Stock Market Today said observing the market.
According to the market analysts, the key range to watch for immediate support and resistance is 24,570 to 25,250 for future directional moves.
"Additionally, investors should monitor geopolitical factors, trade policy, and economic data closely as long-term investment opportunities in high-quality stocks may soon emerge. Amid these situations, Nifty closed below 20 and 50 days EMA forming a High Wave Doji candlestick pattern on a daily timeframe. Moreover, Nifty can expect support near 24,810 and 24,670 while resistance near 25,080 and 25,195 in the next session," she added.
