Ahead of Market: 10 things that will decide stock action on Thursday
equity indices fell on Wednesday, dragged by declines in financial stocks after a two-session rally, as sentiment weakened amid ongoing foreign outflows and lackluster corporate earnings.
The 30-share BSE Sensex dropped 426 points, or 0.53%, to close at 79,942, while the broader NSE Nifty fell 126 points, or 0.51%, to end at 24,340.
Here's how analysts read the market pulse:
«Nifty opened gap down today and witnessed volatile price action during the day. It closed down 126 points. on the daily charts we can observe that the Nifty has been trading in the range of 24,500 – 24,070 since the last five trading sessions. The rangebound action in the index is likely to continue on account of the monthly expiry of October series derivative contracts. Post that we are likely to witness trending moves. Crucial support levels are 24,200 – 24,180 while resistance is placed at 24,500 – 24,550,» said Jatin Gedia of Sharekhan.
Rupak De of LKP Securities, said, «On the hourly chart, Nifty encountered resistance around the 50 EMA, leading to a correction toward 24,300. Sentiment may stay sideways as long as Nifty remains within the range of 24,250 to 24,500. A decisive breakout from this range is likely to give direction to Nifty. On the lower end, supports are placed at 24,250 and 24,000, while resistances are seen at 24,500 and 24,750.»
That said, here’s a look at what some key indicators are suggesting for Thursday's action:
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