Sensex Today: Stock Market Highlights: Should traders go short on Monday?


The Nifty has turned negative on a year-to-date (YTD) basis, and as long as it trades below 17,700 levels – the outlook is likely to remain negative in the short term.

Traders can go short on the index for a possible target towards 17,100 levels in the coming week, also the expiry week, suggest experts.

“Markets are finally witnessing pressure after showing resilience for quite some time, and indications are pointing towards further decline. The Nifty index has the next crucial support at the 17,100 zones,” Ajit Mishra, VP – Research, Religare Broking, said.

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The FED’s 75bps rate hike was anticipated, but the sustained aggressive stance indicating 125 bps hikes in the next two policy meetings by Dec 2022 spooked the market. The INR fell to a new record low of 81 per USD as FIIs began selling. The extended hawkish monetary policy is bound to further slowdown the global growth engine. India is in a better position with a decoupled economy with pickup in credit growth and tax collection. However, rise in geopolitical risk and economic slowdown will affect India with a lag and weaken the performance in the short-term.For the week ahead, investors will keenly watch the outcome of the RBI monetary policy on September 30th. There is a consensus that a 50bps rate hike will help strengthen INR. Benign oil prices and strong local demand may help the RBI to maintain the balance between growth and inflation. We expect the market direction will be led by global developments and FIIs’ action. On the valuation front, India is the most expensive stock market in the world today. Therefore, investors are advised to wait and watch until the dust settles

– Vinod Nair, Head of Research at Geojit Financial services

Tech View: Bloodbath on D-St! Should traders go short on Monday?

The short-term moving average for the Nifty50 is at 17,315. The index bounced back after taking support around 50-DMA to finally close 302 points lower at 17,327. It hit an intraday low of 17,291. The Nifty50 formed a long bearish candle on the daily charts. The Supertrend indicator also triggered a sell on Friday. Traders can go short on the index for a possible target towards 17,100 levels in the coming week, also the expiry week, suggest experts.“Markets are finally witnessing pressure after showing resilience for quite some time, and indications are pointing towards further decline. The Nifty index has the next crucial support at the 17,100 zones,” Ajit Mishra, VP – Research, Religare Broking, said.

The Bank Nifty index last week witnessed extreme selling pressure from the higher levels after the key event of the US FED. The index breached the crucial support of 40,000 and closed below it, confirming the breakdown and activating the sell-on-rise mode. The index remains in a sell-on-rise mode with hurdles at 40,500 and the next support is visible at 39,000.

– Kunal Shah, Senior Technical Analyst at LKP Securities

Negative global cues and FIIs turning heavy sellers, impacted investor’s sentiments on the last day of the week. US Fed’s aggressive stance has increased recessionary fears on global front and created nervousness on domestic markets as well. Nifty was showing signs of weakness from its opening and broke its crucial support of 17,400 levels. India VIX rose sharply by 9.2% to 20.5 levels, indicating that volatility may remain high going forward. India would continue to take cues from global front as well as upcoming RBI meeting which is also expected to hike interest rates in line with US Federal Reserve. Nifty opened gap down and witnessed another day of intense selling to close near day’s low. All sectorial indices, including broader market under performed with Realty, PSU Bank down by more than 3%

– Mr. Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Market View – Ajit Mishra, VP – Research, Religare Broking

Markets plunged sharply lower and lost over one and a half percent, pressurised by weak global cues. The Nifty index remained under pressure from the beginning and finally settled around the day’s low to close at 17,327.35 levels. The selling pressure was widespread wherein banking, energy and realty were among the top losers. In line with the move, the broader indices too ended deep in red and lost over 2% each.

Markets are finally witnessing pressure after showing resilience for quite some time and indications are pointing towards further decline. The Nifty index has the next crucial support at the 17,100 zone. Since most sectors are trading in tandem with the benchmark, it’s prudent to maintain short positions also. Investors, on the other hand, should utilise this phase to accumulate quality stocks in a staggered manner.

A rise in the…



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