Stock Market

Pressure in the market till strong sentiment is found! Nifty may weaken till 17000 level, what should investors do?

Selling pressure has been seen in the market this week. While there was no trigger domestically, global market sentiment remained weak. Weakness can be seen in the market till November expiry.

Stock Market Outlook: Talk about this week having 4 business days, selling pressure has been dominating in the stock market. Thursday’s buzzer went off weakly for the third day in a row. While the global sentiment remained weak, there was no positive trigger at the domestic level. Selling by FIIs and inflation further weakened the market sentiments. FIIs have so far withdrawn Rs 6000 crore from equity in November. Nifty closed 101 points and Sensex down 314 points on Thursday. The broader market was also an underperformer throughout the week. Almost all the sectors closed in the red mark. Experts say that if we talk about the coming week, then there is a possibility of volatility in the market. The current selling pressure may drag on till the expiry of the month of November. Although the long term outlook is better. Add quality stocks to the portfolio if this is the reason for the downtrend.

Weakness will remain till expiry

Swastika Investmart Ltd. Head of Research Santosh Meena says that after a long consolidation in the domestic market, weakness is being seen. Weakness can be seen in the market till November F&O expiry. He says that the market has been an underperformer since the beginning of November. Talking about the global market, mixed action has been seen in them. At the same time, the rise in the dollar index remains a concern for an emerging market like India. There has been some softening in Brent crude, which is a positive factor.

What will be the trend of FIIs next week, it will also be very important for the market. FIIs seem to be in a selling mood for the past few days. If this continues even further, the decline in the market may increase. On the domestic front, the government’s withdrawal of the agriculture law will not have a significant impact on the market. Because this law had not come into force yet.

Nifty may weaken till 17100-17000

Santosh Meena says that technically Nifty was consolidating between its 20 and 50-DMA. But now it has closed below the 50-DMA, which may further increase the selling pressure. Nifty is forming a bearish head and solder formation with neckline support at the level of 17600. If Nifty breaks this level, then it can weaken down to the zone of 17100-17000. However, there will be 17450-17250 intermediate support zone during this period.

On the upside, the 20-DMA is currently placed at the 18000 level, which is a strong resistance. If Nifty breaks this level, then some short covering rally can be seen from here. Talking about Bank Nifty, this week it has been an underperformer and can go towards its rising 100-DMA which is near the level of 37000. There will be a 50-DMA Immediate Hurdle of 38500.

No specific trigger at domestic level

Ajit Mishra, VP Research, Religare Broking, says that due to expiry next week also there may be volatility in the market. There is no specific trigger for the market at the domestic level, so the global sentiment will be monitored. If we look at the technical chart, there is support for Nifty at 17300-17500 zone, while resistance is visible at the zone of 17900-18000 in case of rebound. He says that the selling in the market may increase next week, but it seems that after the fall in the banking sector this week, there will not be much weakness. Given the prevailing environment, it is prudent to restrict longs in the index and use a rebound to create shorts till the pattern is rejected.

what investors to do

Siddharth Khemka, Research Head Retail, Motilal Oswal Financial Services, says that the market is in a consolidation mood even after the overall good quarterly results, as the market valuation is very high. The performance of companies in the September quarter has been better than expected. O&G and metal sector have given better results. Talking about the BFSI sector, the asset quality has improved. The technology sector has seen better topline growth. Despite this, selling pressure remains in the market due to weak global cues and high valuations. Although the long term outlook of the market is better, hence any downside in the current times is advised to add quality stocks to the portfolio. Unless a fresh positive trigger is found, there will be weakness in the market.

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