The benchmark index Sensex and Nifty lost their initial lead on 30 September and closed 400 points and 120 points below their intraday highest level respectively. The Sensex fell at 97.32 points or 0.12% to 80,267.62 and the Nifty fell 23.8 points or 0.1% to close at 24,611.10. Around 1,970 shares rose, 1,939 declined and 153 shares did not change.
Despite the RBI relaxing the loan criteria and tightening the monitoring on lenders, the bank Nifty fell 250 points from its Intrade highest level. Meanwhile, the Nifty PSU bank index increased by 1.8%.
The volatility index, India VIX, was trading 3% to 11.73. High VIX levels indicate that traders will see uncertainty in the market in the near future. Today was also the expiry date of Nifty F&O. During the expiry days, there is usually fluctuations in the market.
How will the market move forward
Enerich Money CEO Ponmudi R reported that the Nifty closed near the lowest level of the day after heavy selling pressure around 24,770-24,800. The index remained under pressure throughout the day. The index remained above 24,610 for some time, but the selling pressure pulled it down to a slope level of 24,540. If this level is broken, the next support level will be around 24,400. Going down from this level will confirm that the short -term trend of the Nifty has become more negative.
From a technical point of view, motion indicators are seen to be drawn and approaching the oversold zone, leading to a bounce in short-coverings. However, the market will be cautious until the major resistance levels cross the resistance levels.
V.K. Vijaykumar, the main investment strategist of Geojit Investments Limited, said, “There is no surprise from the announcement of monetary policy on October 1. The current development and inflation status does not demand a cut in rates. Therefore, RBI can maintain a generous stance to support economic growth, keeping the rates unchanged.
He further said that the short -term market trend is looking weak. The constant selling of foreign institutional investors and lack of positive signals is hindering the improvement in the market. As a result, any attempt to move upwards is under pressure to sell. This is evident from the negative bandh of yesterday, while institutional investors invested more than ₹ 1,000 crore.
