After The Bell: Nifty holds 17600 on expiry day! What should investors do on Friday?

Indian market closed in the red for the third consecutive day in a row on Thursday following muted global cues. The Nifty50 index remained volatile on the September F&O expiry day, but bulls managed to push the index back above 17600 levels.

Let’s look at the final tally – the Nifty50 fell 93 points to 17,618 while the S&P BSE Sensex was down 286 points to close at 59,126.

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"Indian market opened on a flat note and slipped in the later half tracking weak global cues and fall in heavyweights,” Vinod Nair, Head of Research at Geojit Financial Services, said.

“Worries over the US debt ceiling crisis and uptick in bond yield triggered further consolidation. The domestic market also got vigilant ahead of the release of August’s core sector output data,” he said.

Sectorally, buying was seen in realty, consumer durable, utilities, and power stocks while profit-taking was seen in banks, metals, and IT stocks.

On the broader markets front – the S&P BSE Mid-cap index rose 0.3 percent, and the S&P BSE Small-cap index rose 0.5 percent – outperforming benchmark indices.

India VIX fell by 2.32 per cent from 18.83 to 18.40 levels. Spurt in India VIX is giving a volatile swing and now it must cool down below 15-14 zones to continue the smooth ride of the market.

Experts are of the view that if bulls have to remain in control that the Nifty50 should hold on to 17450-17580 while on the upside 17850 levels is likely to act as a crucial resistance level.

We spoke to various experts and here’s is what experts advise investors to do when the market opens for trading:

Expert: Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited

The Nifty50 index formed a Bearish candle on the daily scale and closed with losses of around 90 points. It has been forming lower highs from the last four sessions and resistances are gradually shifting lower.

Now, the index has to hold multiple support of 17580 zones, for an up move towards 17777 and 17850 zones whereas support is shifting lower to 17450 and 17350 zones.

Expert: Rahul Sharma, Co-founder, Equiy99

Markets are expected to fall further as it is in consolidation mode. Auto companies will be declaring their September sales numbers from Friday. Sectors to focus on – Automobiles, Banks, Real-estate & Telecommunication.

Nifty on Hourly charts has shown weakness and has closed below its 100DEMA, a similar setup which was seen on 28th September.

We can see support on the lows of the day, which is near 17585, now going ahead immediate support will be 17575 followed by 17525 and bigger support at 17450 & upside resistance will remain at 17720 followed by 17800.

Expert: Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd

Investors booked profit on the expiry day due to a lack of fresh triggers and tepid global cues. Benchmark Nifty is hovering within the range of 17600-17780 and on intraday charts, it has formed a lower top formation which is largely negative.

However, the medium-term structure is still positive. The intraday trading setup suggests 17700 could act as a strong resistance level, and below the same, the correction could continue up to 17500-17450 levels.

On the flip side, beyond 17700 the immediate hurdle would be the 17750 level. On the contrary, any revival could lift the index up to 17800.

Expert: Arijit Malakar, Head Research (Retail) of Ashika Stock Broking Ltd

Asian markets traded mixed this morning after China released mixed economic data and investors continued to monitor the situation at China Evergrande Group.

Globally, the factors like inflationary pressure in the US, rising bond yields, looming energy crisis, supply chain bottlenecks, and regulatory risks in China weigh on the investors’ sentiment.

Further, President Joe Biden’s government's inability to pass key economic bills in the White House could also be a cause of concern for the global markets in the near term.

On the domestic front, the MSCI Standard Index review for India will be completed by October and it may lead to an increase in the weights of technology stocks in the index.

Buying is seen in the Pharma, Realty, power, and PSU bank stocks, while selling is seen in the IT, metal, auto, and banking sectors.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)