Investors are advised to avoid fresh buying at current levels - Mr. Rahul Sharma, Co-Founder, Equity99
2021-10-06 21:29:21 (Time Zone: IST)
Today profit booking was seen in markets after ranging upwards in early morning trades. Sensex was down 637 points while Nifty was down 203 points. All indexes were in red today with the Service sector being least affected followed by Banks & FMCG. Textile stocks were in focus today. The banking index was down 271 points with Bandhan bank being the top performer. The midcap index was also down 326 points. Among Nifty50 pack Tata consumer prod was the top performer followed by ONGC & UPL, while Hindalco, SBI Life Insurance & IndusInd Bank was the top loser.
Profit booking was seen in Indian markets along with weak global clues with DOW Futures down 340 points. Investors are advised to keep strict stop loss to positions and avoid any fresh buying at current levels.
Nifty today witnessed a sharp decline in the second half of the session, On Hourly charts, we can see a reversal which crossed 89WMA & 50DEMA but has taken support by its 100 DEMA. Support further is placed at 17595 followed by 17490& 17375 & Similarly on Upside 17750 will act as immediate hurdle cross-over will again test 17850-17900 levels.
Bank Nifty which was much stable than the main Index but showed us a similar signal, the second half of the session was filled with supply. Now going forward support for Bank Nifty is placed at 37300 -37100-36900 & resistance is placed at 37800 - 38100 levels.
Selling is quite visible on higher levels for both indices.
Sector in focus tomorrow - Chemicals, Textiles, Banks & Logistics