Trade Setup For Nov. 22: Nifty 50 Sentiment Weak With Support At 23,200
The Nifty 50 dropped to 23,349.90 as global tensions and domestic pressures weighed on markets, with analysts pointing to 23,200 as critical support for stability.
In the short term, Nifty 50 sentiment remains weak, with support placed at 23,200, according to Rupak De, senior technical analyst at LKP Securities. A fall below this level (23,200) could trigger a correction in the market, he said.
“On the upside, resistance is placed at 23,550; a decisive move above this level might induce a rally in the market," he added.
Selling is seen on every rise, but for a trend reversal, Nifty 50 has to clear the hurdle of 23,800, according to Aditya Gaggar, director of Progressive Shares.
“Until then the trend will remain weak, and breaking below today's low will open the doors for the next important support of 23,000,” he said.
According to the hammer candle, if the Bank Nifty sustains above today's high of 50,652, a pullback to the 51,000-51,500 levels is possible, said Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.
“On the downside, the 200-day moving average is placed near 49,820, and the low of the hammer candle is placed near 49,787 levels, which will act as support points. If the index manages to respect the 49,787 mark, a relief rebound is likely in the index,” he said.
Market Recap
Benchmark equity indices resumed their declines on Thursday to record their lowest closing in more than five months as sentiment around the globe was weakened due to tensions in Russia-Ukraine and as investors assessed Nvidia's quarterly results.
The Nifty 50 ended 168.60 points, or 0.72%, down at 23,349.90, and the Sensex closed 422.59 points, or 0.54%, down at 77,155.79.
Money Market
The Indian rupee closed at a record low against the US dollar on Thursday.
The local currency closed nine paise higher at Rs 84.50, according to Bloomberg data, as the Reserve Bank of India continued intervention. It had closed at Rs 84.41 on Tuesday.
