Shillong, October 26: Nifty experienced a bearish trend on Thursday, slipping below the 19,000-mark for the first time in four months, signaling a growing bearish sentiment, according to Rupak De, Senior Technical Analyst at LKP Securities.
Nifty closed 281 points lower at 18,841, while the Sensex fell by 900 points to settle at 63,148.
As per IANS, the momentum indicator shows a bearish crossover, further confirming the negative momentum. In this current situation, the support levels appear fragile and susceptible. Despite the recent sharp decline, the likelihood of further correction from the present level remains high.
Support is identified in the range of 18,600-18,645, with resistance positioned at 18,950-19,000, as stated by De.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, noted that the short-term trend of Nifty remains negative. However, with Nifty entering oversold territory, there is a chance of an upward rebound from these lows. A decisive move below the 18,800 level could lead to the next downside of 18,500-18,600 in the near term.
The shares of fertilizer companies have declined following the government’s reduction in subsidies for the upcoming Rabi season, as mentioned by Deepak Jasani, Head of Retail Research at HDFC Securities.
On Wednesday, the government approved a Rs 22,303 crore nutrient-based fertilizer subsidy. The revised subsidy rates for nitrogen, phosphorus, and potassium fertilizers have been reduced, driven by falling input prices.
The Nifty Metal and Nifty Auto sectors saw the most significant declines, down by 1.62 percent and 1.59 percent, respectively, according to Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.
Top gainers on the Nifty included Axis Bank, HCL Technologies, Adani Ports, IndusInd Bank, and ITC, while the biggest losers were M&M, Bajaj Finance, Asian Paints, UPL, and Bajaj Finserv.