Weak Start Expected for Indian Stock Market Amid Global Downturn

Weak Start Expected for Indian Stock Market Amid Global Downturn

VoM News Desk | October 13, 2023 | 11:11 AM IST | Breaking News | Follow on Google News

Weak Start Expected for Indian Stock Market Amid Global Downturn

Weak Start Expected for Indian Stock Market Amid Global Downturn

The Indian stock market indices are anticipated to open on a weak note, influenced by negative cues from global markets, as both Asian markets and Wall Street indices experienced declines.

Indications from Gift Nifty suggest a gap-down start for the Indian benchmark index, with the Gift Nifty trading around the 19,690 level compared to the Nifty futures’ previous close of 19,842.

On Thursday, the domestic equity market recorded minor losses, primarily due to a downturn in IT stocks. The BSE Sensex declined by 64.66 points to close at 66,408.39, while the NSE Nifty 50 index settled 17.35 points lower at 19,794.00.

Technical analysis indicates that the Nifty 50 formed a small negative candle on the daily chart, displaying minor upper and lower shadows. Nagaraj Shetti, a Technical Research Analyst at HDFC Securities, described this pattern as a type of spinning top formation following a slight rise. However, it is worth noting that this candle is situated alongside the previous session’s bullish candle. According to Shetti, this market action suggests the possibility of minor short-term weakness in the coming sessions. Nonetheless, the overall chart pattern suggests that there may be buying opportunities on dips in the short term.

Nifty 50 and Bank Nifty Expectations

For Nifty 50, it remained range-bound after a flat opening on Thursday. Analyst Rupak De from LKP Securities suggests that the market is likely to continue this range-bound movement until Nifty makes a decisive breakout either above 19,850 or below 19,750. A clear breakout above 19,850 could potentially propel Nifty towards the 20,000 level.

Regarding the Bank Nifty, it consolidated and closed 82 points higher at 44,599. According to Kunal Shah, a Senior Technical & Derivative analyst at LKP Securities, the Bank Nifty index continued its consolidation phase, encountering resistance at 44,700 and support at 44,400. Despite this consolidation, the overall market sentiment remains bullish, and any dips are seen as opportunities to initiate fresh long positions. The target is 45,000, where the highest open interest exists on the call side. Shah also anticipates that a break above 44,700 will accelerate upward momentum, driven by fresh short-covering activities.

Investors and traders in the Indian stock market will be closely monitoring these developments, taking into account the global economic landscape and market sentiment as they make their trading decisions.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.