Nifty Faces Profit Booking Amidst Market Turbulence

Last week, we witnessed profit booking as the selling volume increased by 31.66% compared to the previous week. This week, Nifty opened at 20,155.95, reached a high of 20,195.35, a low of 19,657.5, and closed at 19,674.25, losing 518.1 points. Nifty seems to be entering a selling mode, and we might observe further selling pressure in the coming week. The bears have widened the range of Nifty from 300 to 500 points on a weekly basis. On the weekly chart, Nifty has formed Bearish Marubozu.

Nifty has breached most of its support levels, with bears prevailing over bulls to take over. It managed to close 191.1 points lower than the previous week’s low, indicating that the bears are gaining ground. On Friday, the bulls attempted a rebound from lower levels, reaching a high of 19,798.65, but the index was unable to sustain at this level. All major indicators and oscillators are in the negative territory. Nevertheless, Nifty could rebound if it finds support at 19,600. The Nifty bank is also in negative territory according to major indicators and oscillators, but it could potentially rebound if it finds support at 44,500.

Interestingly, the outcome of the Federal Reserve’s September 2023 meeting, signaling Hawkish Pause with the possibility of one or two rate hikes, is not a positive signal for global markets. Additionally, Brent crude trading at around USD94 per barrel, approaching its 52-week high of USD 99.56 per barrel, is also not supportive.          

On Friday, Nifty lost 68.1 points, closing at 19,674.25, indicating an ongoing bearish momentum. Nifty is expected to find support at 19,600-19,575-19,500, while resistance levels are likely 19,750-19,825.

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