Ahead of Market: 10 things that will decide stock action on Friday
equity indices fell for the third consecutive session on Thursday, weighed down by Bajaj Auto's warning of weak festive sales, along with concerns over high stock valuations and ongoing foreign fund outflows.
The 30-share BSE Sensex dropped 495 points, or 0.61%, to close at 81,006, while the broader NSE Nifty declined 221 points, or 0.89%, ending at 24,749.8. The Nifty50 also touched a two-month low during the session.
Here's how analysts read the market pulse:
«The Nifty has found initial support in the 24,700–24,750 zone. On the daily chart, the Nifty has broken down from a bearish flag pattern, suggesting a possible downward move in the short term. The RSI is showing a bearish crossover and is declining. However, this may not be the ideal level to initiate short positions, as the index has experienced a steep correction and is near a double-bottom support, which could trigger a near-term recovery toward 25,000. Conversely, a decisive fall below 24,700 could lead to a significant correction in the market,» said Rupak De of LKP Securities.
Tejas Shah of JM Financial & BlinkX, said, «Technically, the Nifty Index was just consolidating in a narrow range i. e. Between 25,250 to 24,950 for the past few days and it gave a mini breakdown in today’s trading session once it closed below 24,950 levels. Support for Nifty is now seen at 24,700-750 and 24,500. On the higher side, immediate psychological resistance for Nifty is at 25,000 Mark and the next crucial resistance zone is at 25,250-300 levels. Overall, the bears
