Nifty 50, Sensex today: What to expect from stock market indices in trade on September 22

livemint.com:

Indian stock market indices are likely to open lower on Friday amid weak sentiment in the global peers. The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading at around 19,714 level as compared to the Nifty futures’ previous close of 19,769.

On Thursday, the domestic equity markets witnessed an all-round selloff with both the benchmark indices ending in the negative territory for the third consecutive session. The Sensex dropped 570.60 to close at 66,230.24, while the Nifty 50 settled 159.05 points lower at 19,742.35. Nifty 50 formed a long bear candle on the daily chart with an unfilled opening down gap, which is back to back for the last two sessions.

“Technically, whenever the underlying shows sharp reversals with more gap up or gap down moves, such trend more often continues for a longer period. Having formed the top reversal pattern at 20,222 levels and the recent gap down openings indicates more weakness ahead for the market," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. Shetti believes minor upside bounce is to be expected from the support level at around 19,550, which is weekly 10 period EMA (exponential moving average), but the said bounce could be a sell on rise opportunity.

Also Read: 5 things that changed for market overnight: Gift Nifty, BoE monetary policy to global market cues for Sensex today Here’s what to expect from Nifty and Bank Nifty today: Nifty extended its decline for the third day as the benchmark index slipped towards 19,700. “The Nifty index closed below the 20 EMA, signaling a diminishing bullish sentiment. Weakness appears evident with a bearish crossover in the RSI.