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News Topical, Digital Desk : The stock market closed with losses for the sixth consecutive day on Friday. Weak signals from global markets, continued selling by foreign funds, and pressure on IT and pharmaceutical stocks led to a sharp decline. On Friday, the Sensex fell 733.22 points, or 0.9%, to close at 80,426.46, its lowest level in the last three weeks. The Nifty fell 236.15 points, or 0.95%, to close at 24,654.70, also its lowest level in three weeks. Both the Sensex and Nifty have fallen by more than three percent since September 19th. According to experts, the charts are still indicating weakness, so maintain caution regarding the market.
Analysts' Opinion:
In a Moneycontrol report, experts agreed that technical indicators point to further weakness. Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, said the RSI is below the 40 level, suggesting further downside potential. 24,450–24,500 is crucial support. If Nifty breaks below 24,450, it could fall to 24,200, while resistance is at 24,850–24,900. Ajit Mishra, SVP Research at Religare Broking, said the Nifty is now approaching its 200-DEMA (24,400). The sharp decline in midcap and smallcap stocks has further dampened sentiment. He advises investors to remain cautious, focus on stocks of strong companies, and avoid aggressive bets. His opinion on Bank Nifty is that Bank Nifty has fallen below the 100-day EMA (54,901) and has fallen for the third consecutive day. According to him, the index has formed a large bearish candle on the weekly chart. Resistance for the index is at 55,600–55,650, while support will be at 54,100–54,000. A drop below 54,000 could lead to a drop to 53,500, while resistance is at 54,900–55,000.
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