IGI Logo

Below the Market Analysis 26 October 2023 by Mr. Ajit Mishra, SVP - Technical Research, Religare Broking Ltd

Markets plunged sharply lower for the third successive session and lost nearly one and a half percent.  After the gap-down start, the Nifty gradually drifted lower as the day progressed and finally settled around the day’s low at 18,857.25 level. All sectors traded in sync and closed in the red wherein auto, metal and banking were among the top losers.  Meanwhile, the broader indices traded mixed as a sharp recovery in the smallcap index helped the index to close flat while midcap shed nearly a percent. 

Nifty has reached closer to the crucial support zone of 18,800 i.e. long term moving average (200 EMA) and might take a breather after the recent slide. However, pressure on the heavyweights across sectors may cap the rebound. We thus suggest continuing with the “sell on rise” approach and reiterate our preference for index majors over others.

Above views are of the author and not of the website kindly read disclaimer