On the sectoral front, selling was seen in metals, IT and financials, while buying was seen in autos, infra and energy space.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty has been trading near the 78.6 percent retracement of the entire September decline throughout the last week. The key Fibonacci level is near 17800. On October 28, the index attempted to stretch beyond this level on an intraday basis however couldn’t sustain in the higher territory. The hourly chart shows that the index is in process of forming a distribution near this key hurdle. The hourly momentum indicator has developed a negative divergence, which is a sign of exhaustion. The overall structure shows that the next move down could be around the corner. The immediate support zone is at 17,720-17,700. Once that is breached then the index can tumble towards 17,500 in the short term.
Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas
We expect Rupee to trade with a negative bias amid weak global markets and strong Dollar. Expectations of a 75 bps rate hike by Federal Reserve in its November FOMC meeting may also weigh on Rupee. However, FII inflows may support Rupee at lower levels. Investors may remain cautious ahead of core PCE price index which is expected to increase but at a slower pace than the previous month. We expect USDINR spot price to trade in the range of 81.80 and 83.30 in next couple of sessions.
Vinod Nair, Head of Research, Geojit Financial Services
Gains in index heavyweights helped the domestic market to withstand its gains despite negative trends in its global peers. US tech stocks had a significant sell-off following disappointing quarterly results and a bleak forecast. The ECB raised its interest rate by 75 basis points, also signalling that it is making progress in combating record inflation, though the plausibility for a recession grew. However, the strengthening rupee along with a softening treasury yield and decent Q2 earnings results are supporting the domestic market in the near term.
