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Below the Quote on Post market commen for Wednesday October 21 by Hitesh Tailor, Technical Research Analyst at Choice Broking

Indian equities remained under pressure on 21 October, with the Nifty closing at 22,811.35, down 77.60 points (-0.34%), marking its second consecutive session of decline. The index opened higher at 23,016, a gap-up of around 127 points, and initially advanced to an intraday high of 23,120.90 within the first half-hour. However, selling pressure emerged soon after the early rise and dragged the index down to an intraday low of 22,649.90. A late recovery helped the index move away from the day’s low, but it failed to regain the opening levels and closed lower, reflecting persistent selling pressure at higher levels.

The daily candlestick reflects a bearish session, with the index facing rejection from higher levels and testing lower price zones before recovering partially. The chart shows the Nifty trading below its key moving averages, with the 50-day EMA near 23,278 acting as an overhead hurdle and the 200-day EMA near 23,991 indicating broader trend weakness. The RSI stands at 46.27, above its average of 37.52, suggesting some improvement in momentum from recent oversold levels, although the price structure remains weak. Immediate support is placed at 22,500–22,600, while resistance is seen around 22,950–23,000. The PCR at 0.70 reflects a cautious options-market setup, while India VIX rose 6.11% to 15.6750, indicating increasing uncertainty and volatility.

Sectoral performance was predominantly negative, with selling pressure across Chemical, Metal, Auto, Realty, Media and Consumer Durables. Nifty IT was the highest gainer, rising 2.88%, while Nifty Chemical was the weakest sector, declining 2.64%. Cement also managed to close marginally higher, but weakness across most major sectors reflected a cautious market environment.

Bank Nifty closed at 54,976.90, down 511.20 points (-0.92%). The index opened higher at 55,707.85 and initially advanced to an intraday high of 55,867.45 within the first half-hour. However, strong selling pressure emerged thereafter, dragging the index to an intraday low of 54,596.45 before a late recovery lifted it to the closing level. The daily chart indicates a bearish breakdown below the rising trendline support, suggesting weakening short-term price structure. The index has also faced resistance around the 50-day EMA near 56,019 over recent sessions, while the 200-day EMA near 56,454 remains another significant overhead hurdle. Immediate support is placed at 54,400–54,700, while resistance is seen around 55,300–55,550.

The daily candlestick reflects strong selling pressure from higher levels, with the index closing below the rising trendline and indicating a loss of near-term bullish momentum. The RSI stands at 43.51, marginally above its average of 42.83, suggesting that momentum remains subdued despite a slight positive divergence from its average. Among the constituents, Axis Bank was the top loser, declining around 2.1%, while Union Bank showed relative strength and closed higher by approximately 0.7%. A sustained move below the immediate support zone could invite further weakness, whereas a recovery above resistance would be required to improve the short-term outlook.

The overall market bias remains cautious, as both Nifty and Bank Nifty faced selling pressure despite opening higher. The rise in India VIX and a PCR of 0.70 indicate elevated uncertainty and cautious market sentiment. Although both indices recovered from their intraday lows, sustained buying above their respective resistance zones is needed to strengthen the recovery. Key support levels remain crucial, and the indices may find buying interest at lower levels; however, volatility and intermittent selling pressure may persist in the near term.

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