Commenting on the day’s action, Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking said that Nifty is forming a bullish candle on the daily chart, taking support at its 21-day moving average, near the 25,000 mark, though facing resistance around the 25,200 level.
In his view, a decisive breakout above 25,200 could open the door for a fresh leg of the rally, potentially triggering short-covering and a swift move towards 25,350. “Momentum indicators and oscillators on the daily chart remain firmly in buy mode, suggesting that any dip is likely to attract buying interest. The immediate support has now shifted higher to 25,000, and as long as the index holds above this level, a move towards 25,400 in the October series appears likely,” Jain said.
Here’s breaking down of the pre-market actions:
STATE OF THE MARKETS
- Tech View: Expert Rupak De said that index remains below the resistance level of 25,250 notwithstanding Thursday’s gains where it shrugged off previous session’s negativity. “The short-term sentiment remains positive, with the index sustaining above the critical moving averages on the daily timeframe. On the higher end, a decisive move above 25,250 might trigger a rise towards 25,600 in the short term, while on the lower end, support is placed at 25,000,” De said.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 1.86% to settle at 10.12 levels.
FII/DII action
Foreign institutional investors (FIIs) were net buyers of Indian equities as they bought shares worth Rs 864.36 crore on Thursday while the domestic institutional investors (DIIs) shares worth Rs 1,308.16 crore.Stocks in Ban
RBL Bank is under F&O trade ban today.
Rupee
The rupee traded with a slight negative bias and hovered near its all-time low levels before settling for the day at 88.79 against the US dollar, lower by 4 paise on Thursday, as strong greenback demand and ongoing trade tensions between India and the US weighed on investor sentiments.
Forex traders said the USD/INR pair is trading in a tight range as absence of economic data from the US amid the government shutdown may also lead to consolidation.
At the interbank foreign exchange, the rupee opened at 88.76 against the greenback and fell to an intraday low of 88.79 and a high of 88.74. It finally closed the day at 88.79 against the greenback, registering a decline of 4 paise over its previous close. On September 30, the rupee had fallen to an all-time low of 88.80 against the US dollar.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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