On October 31, the Nifty index witnessed significant fluctuations before closing in the negative territory. After enjoying a gain over the past two days, the upward trend was halted today. The Nifty concluded below 19,100. By the end of trading, the Sensex decreased by 237.72 points, or 0.37%, closing at 63,874.93, whereas the Nifty dropped by 61.30 points, or 0.32%, ending at 19,079.60. Approximately 1,830 stocks witnessed an upward trajectory, 1,675 declined, while about 117 remained unchanged.
Today, companies like M&M, Sun Pharma, Ashok Leyland, L&T Industries, and ONGC emerged as the top losers in the Nifty index. On the contrary, SBI Life Insurance, Titan, HDFC Life, Kotak Mahindra Bank, and Asian Paints were among the ones that saw the most gains. Barring the realty sector, almost all other sectoral indices closed in the red. The automobile, banking, and healthcare sectors reported declines between 0.3% to 0.6%. The BSE Midcap Index advanced by 0.3%, while the Smallcap Index remained flat.
Analysts noted that the Indian stock markets began the last day of the month in a crucial zone of 19,200-19,250. However, Nifty lost its early gains in the morning session itself and was observed trading in a constrained range. While a slight recovery was noticed midway, it didn’t sustain for long. Selling pressure, particularly in banks, pulled the Nifty significantly lower. Closing with a drop of 61.30 points at 19,079.60, the Nifty formed a dark cloud cover candlestick pattern, indicating bearishness. In the short term, the Nifty might be seen trading between the range of 18,800 to 19,200-19,250.
Another observation from market experts is that the Nifty faced challenges after a gap-up opening. It met stiff resistance at higher levels and failed to surpass the day’s high. Currently, it’s trading in a broad range between 18,900 and 19,250. A break on either side of this range will determine the market’s direction. However, the overall market trend seems negative. A close above 19,300 for the Nifty would indicate a potential bullish turnaround.
It’s reported that amidst selling in banking, auto, and IT stocks, the market remained under pressure today. Weakness in Asian markets also dampened the mood. Even though the Indian market has been robust compared to other countries, it has been shaky due to continuous foreign institutional investors (FII) selling over the past month.
In the medium term, the market might exhibit a mixed trend. The daily chart shows a bearish candle formed by the Nifty, suggesting further weakness from the current levels. The market may consolidate in the 18,980 to 19,220 range. However, a drop below 18,980 might increase the selling pressure.
