What to anticipate from the trading of the Nifty 50 and Sensex on October 19

 What to anticipate from the trading of the Nifty 50 and Sensex on October 19

As the Asian markets and US equities plummeted, the Indian market is set to continue its downward trend on Thursday.

The patterns on Gift Nifty also point to the Indian benchmark index beginning with a gap-down. In comparison to the previous closing of 19,666 for the Nifty futures, the Gift Nifty was trading at roughly 19,568.

On Wednesday, the equities market had a significant reversal, with both benchmark indexes finishing in the red due to mounting worries that the conflict between Israel and Hamas may become worse.

The NSE Nifty 50 down 140.40 points to conclude at 19,671.10, while the 30-share BSE Sensex fell 551.07 points to close at 65,877.02.

On the daily chart, the Nifty 50 developed a lengthy bear candle, which suggests a double top type pattern at levels of 19,840. Nifty is situated at the cusp of a bearish breach of the lower range and is contained inside a wider high low range of 19,840-19,635 levels.

"Once Nifty in the near term goes below 19,630 levels, the bullish positive chart pattern, including higher peaks and bottoms, might be negated. According to HDFC Securities' Nagaraj Shetti, a daily 10 and 20 day EMA (exponential moving average) has been slightly violated on the downside around 19,700 levels.

Shetti claims that after exhibiting range-bound behavior, the short-term trend of the Nifty seems to have flipped downward. 

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

Nifty 50 Bears are still in control as the index saw selling pressure all day on October 18. 

"The Nifty encountered resistance at 19,850, causing a decline toward 19,650. The index may have a range-bound motion in the future until it breaks out in either direction. The Nifty may drop near 19,250 if it drops below 19,650, according to Rupak De, Senior Technical analyst at LKP Securities.

He thinks that on the upper end, a strong rise over 19,850 would pave the way for 20,200.

BNP Paribas

In addition, Bank Nifty saw a severe reversal and dropped 521 points (1.2%), closing at 43,889.

"During a negative trend, the Bank Nifty index ran into significant resistance around 44,500, where the majority of open interest is concentrated. According to Kunal Shah, Senior Technical & Derivative analyst at LKP Securities, "the weak undertone in marketplaces suggests a preference for selling on price gatherings, and a breach of the 43,800 support level is anticipated to give rise to further selling pressure."

The index's position below the 20DMA, he said, supports the negative outlook in the short term.