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Below the Quote on Post market comment Mandar Bhojane, Equity Research Analyst, Choice Broking

At the close of trading today, the Sensex declined by 941.88 points, or 1.18%, settling at 78,782.24, while the Nifty fell by 314.00 points, or 1.29%, to end at 23,990.30. This downturn marks a significant correction for the Nifty, which has now dropped 2,460 points, reflecting a 9.37% decline from its lifetime high. The current market trend suggests a short-term corrective phase, characterized by the formation of lower highs and lower lows, as indicated by the Elliott Wave theory.

Several factors contributed to today’s sell-off, including the upcoming U.S. presidential election on November 5 and the Federal Reserve’s monetary policy announcement scheduled for November 7. Additionally, disappointing U.S. nonfarm payroll data has strained investor sentiment, compounded by weak quarterly earnings and ongoing geopolitical uncertainties. The bearish head-and-shoulders pattern developing on the daily chart reinforces the prevailing negative sentiment.

Currently, the Nifty is trading below the 100-day Exponential Moving Average (EMA), raising the likelihood of further corrections toward the 23,650 level. The Relative Strength Index (RSI) is at 31, indicating potential room for additional downside in the near term. Continuous selling by Foreign Institutional Investors (FIIs) has further exacerbated market volatility, with the volatility index (VIX) now at 16.68, highlighting the uncertain conditions investors face.

For investors, this market correction presents an opportunity to acquire quality stocks at lower levels, particularly if the Nifty can hold above the critical support zones of 24,000 and 23,650. These levels may provide strong buying opportunities for long-term growth as the correction nears its conclusion. Looking ahead, if the market stabilizes, the Nifty is projected to target levels of 25,500 and 26,500, offering significant upside potential for long-term investors.
 

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