Nifty Faces Key Support at 22,600 Amid US Market Weakness on Oct 23
As US markets decline and oil prices soar, Nifty's critical support level is tested at 22,600.
Nifty 50 closes at 22,687.65, down 0.54% amid selling pressure.
Immediate support for Nifty identified at 22,600, with resistance at 22,850.
Bank Nifty ends at 54,925.70, showing indecision with support at 54,700.
On October 23, the NSE Nifty 50 is projected to open lower, reflecting the downturn in US markets and a significant rise in crude oil prices, which have reached a five-month peak. The index is currently facing crucial support around the 22,600 mark, according to market analysts.
The previous trading session saw Indian equity benchmarks, including the Sensex and Nifty 50, decline by over half a percent. This drop was attributed to widespread selling, driven by persistently high crude oil prices and ongoing geopolitical tensions that have negatively impacted investor confidence. The BSE Sensex fell by 460.30 points to close at 73,249.39, while the Nifty 50 decreased by 123.70 points, settling at 22,687.65.
Technical indicators reveal that Nifty formed a doji candle, signaling uncertainty among traders. The index has slipped below its 20-day simple moving average, which is positioned near the middle Bollinger Band at 22,760. Om Mehra, a Technical Research Analyst at SAMCO Securities, noted that immediate support for Nifty is at 22,600, followed by 22,480. Resistance levels are set at 22,850 and the psychological threshold of 23,000.
Market experts highlight that a move above the previous day's high of 22,785 could indicate a potential trend reversal, opening avenues for recovery towards 23,175. Sudeep Shah from SBI Securities emphasized that the 22,580-22,550 zone is crucial for Nifty's stability, warning that a decisive drop below 22,550 could lead to increased selling pressure, pushing the index down to 22,400.
In the banking sector, the Bank Nifty index closed at 54,925.70, down 0.09%. It formed an indecisive candle after a gap-down opening but managed to recover from an intraday low of 54,459. Immediate support for Bank Nifty is identified at 54,700, with resistance at 55,150. Analysts caution that a sustained breach below 54,300 may trigger further selling, while the 20-day exponential moving average zone of 55,300-55,400 is expected to pose a significant hurdle for recovery.
