What to anticipate from the stock market indexes in trading on October 23 for Nifty 50 and Sensex

 What to anticipate from the stock market indexes in trading on October 23 for Nifty 50 and Sensex

On Monday, the Indian stock market is anticipated to begin trading lower due to weakness in Asian markets.

The Gift Nifty indicators also point to a sluggish start for the Indian benchmark index. Compared to the Nifty futures' Friday closing price of 19,523, the Gift Nifty was trading at about the 19,495 mark.

On Friday, October 20, domestic stock indexes, the Sensex and Nifty 50, had their third straight session of losses due to rising US Treasury rates. The NSE Nifty concluded 82.05 points, or 0.42%, down at 19,542.65, while the 30-share BSE Sensex closed 231.62 points, or 0.35%, lower at 65,397.62.

On the daily chart, Nifty produced an identical open and close type candle, which suggests the construction of a doji type candle pattern (a tombstone doji pattern, but not a traditional one).

Bulls are often alerted for a recovery from the lows when these patterns occur after a decent decrease or near the supports. However, the confirmation of the pattern by a sustained uptick in the next session indicates an uptick in the underlying, according to HDFC Securities' Nagaraj Shetti, a technical research analyst.

On the weekly chart, Nifty created a lengthy bear candle with an upper shadow and closed the week 1% down.

According to Shetti, who thinks the short term trend of Nifty is still negative, the construction of a negative candle this week may not be a positive indicator after the formation of a bullish hammer type candle and a follow-through upmove in the previous two weeks.

What to anticipate from Nifty 50 and Bank Nifty today is as follows:

Nifty 50

Recent substantial declines in the benchmark Nifty 50 caused it to drop below the 50-day moving average (50DMA). 

"The immediate support level of 19,500 looks to represent the current trend, which appears to be bearish. If the index continues to fall below this level, it may eventually reach a range between 19,150 and 20,000. According to Rupak De, Senior Technical analyst at LKP Securities, the area between 19,600 and 19,650 is anticipated to function as significant barrier on the upswing.

He thinks the market may start to cover short positions if prices climb over 19,650.

BNP Paribas 

The Bank Nifty index has been consolidating recently. On Friday, the index dropped 31.5 points to end the day at 43,723.

The index is at a critical "make or break" moment right now. 43,500 is considered as the cutting point. The market is expected to see further selling pressure if the 43,500 barrier is breached. However, he went on to say that if this level is able to hold on a closing basis, it may lead to a significant short-covering rally, according to Kunal Shah, a senior technical analyst at LKP Securities.

The area around 44,500 might be the prospective target for such a move since there has been a significant buildup of open interest on the call side, according to Shah.