Ahead of Market: 10 things that will decide stock action on Wednesday
equity indices, Sensex and Nifty50, recorded their biggest single-day decline in nearly three weeks on Tuesday, dragged down by slowing corporate earnings and ongoing foreign selling.
The NSE Nifty 50 fell 1.25% to 24,472, while the BSE Sensex shed 1.15% to 80,220. Both benchmarks gained approximately 0.4% in the first hour of trading before reversing those gains, marking their worst session since October 3.
Here's how analysts read the market pulse:
«The Nifty slipped from the head and shoulder pattern on the daily timeframe, leading to a sharp fall during the day. Sentiment further weakened after the Nifty broke below the crucial support level of 24,700. The sentiment may remain weak as long as the index stays below 24,700, with a „sell on rise“ strategy favored by market participants. The index has fallen below the 100 EMA for the first time since early June of this year. On the lower end, support is placed at 24,400, and if the index falls below this level, it may extend its correction towards 24,000,» said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, «On the daily charts Nifty has slipped decisively below the 20-week average (24718) which is a sign of weakness. Daily and hourly momentum indicators possess a negative crossover which is a sell signal. Thus, both price and momentum indicator suggest towards weakness. On the downside, we expect the Nifty to drift towards 24000 where there is a high concentration of open interest on the put side implying support. On the upside, 24900 – 25000 shall
