Nifty 50, Sensex today: What to expect from stock market indices in trade on October 23
BSE Sensex closed 231.62 points, or 0.35%, lower at 65,397.62, while the NSE Nifty settled 82.05 points, or 0.42%, lower at 19,542.65. Nifty formed an identical open and close type candle on the daily chart, which is indicating a formation of doji type candle pattern (type of gravestone doji pattern, but not a classical one).
Also Read: 6 things that changed for the stock market over the weekend - Gift Nifty to selloff on Wall Street “Normally, formation of such patterns after a reasonable decline or at the supports alerts bulls for a comeback from the lows. But, the confirmation of said pattern by the way of sustainable upside bounce in the subsequent session signals upside bounce in the underlying," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
For the week, Nifty ended 1% lower and formed a long bear candle with upper shadow on the weekly chart. After the formation of a bullish hammer type candle and a follow-through upmove in the last two weeks, the formation of a negative candle this week may not be a good sign, according to Shetti who believes the short term trend of Nifty remains negative.
Also Read: Day trading guide for stock market today: Six stocks to buy or sell on Monday — October 23 Here’s what to expect from Nifty 50 and Bank Nifty today: The benchmark Nifty 50 recently experienced a significant decline, falling below the 50-day moving average (50DMA). “The current trend appears to be negative, with immediate support situated at 19,500.
A further decline below this level could potentially lead the index towards the range of 19,150 to 19,000. On the upside, the zone between 19,600 and 19,650 is expected to act as a strong resistance," said Rupak De, Senior Technical analyst at LKP
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