Nifty Falls 275 Points on Monthly Expiry! IT Stocks Decline - Post-Market Analysis

NIFTY started the day flat at 19,761 with a gap-up of 45 points. Initially, the index fell 90 points to 19,670 levels, made a double-bottom, rose 80 points to 19,750 levels, and took rejection. Then, it gave a sharp fall of nearly 260 points till 19,490. Nifty closed at 19,523, down by 192 points or 0.98%.

BANK NIFTY (BNF) started the day at 44,700 with a gap-up of 112 points. Similar to Nifty, BNF gave a sharp fall of 200 points till the round levels of 44,500 initially, made a double-bottom, shot up 200 points till the day’s high, and took resistance. Then, the index fell gradually to 44,250 levels– a fall of 500 points! BNF closed at 44,300, down by 287 points or 0.64%.

All other indices closed in the red. Nifty IT (-2.19%) and Nifty FMCG (-1.9%) fell the most!

Major Asian markets closed mixed. European markets are currently trading mixed.

Today’s Moves

Larsen & Toubro (+1.52%) was NIFTY50’s top gainer. The stock hit a 52-week high of ₹3,050.5 after brokerage firm UBS increased its price target for L&T from ₹3,040 to ₹3,600 per share.

MCX (+8.24%) surged after the company confirmed that it will implement a new web-based Commodity Derivatives Platform (CDP) next week.

CE Info Systems (+7.4%) jumped up to 11% on the back of strong volumes. The stock hit a 52-week high of ₹2,108.95 today.

Tech Mahindra (-4.59%) was NIFTY50’s top loser.

IT stocks LTI Mindtree (-3.16%), Wipro (-2.48%), Infosys (-1.88%), TCS (-1.46%), and others fell sharply.

Shares of HAL have split in the ratio of 1:2. The shares, which had a face value of ₹10 before Sept 28, have halved and are trading at a face value of ₹5 each now.

Berger Paints (-5.6%) fell after Kotak Institutional Equities downgraded the stock to 'Sell', citing weak demand and rising competition.

Markets Ahead

Markets are taking rejections from the high levels. As discussed in the post-market report yesterday, the 23% Fibonacci levels acted as good resistance. The indices continued the fall and hit our targets: 19,560 in Nifty and 44,300 in Bank Nifty.

Both indices are still under a sell-on-rise structure.

Nifty: The immediate support for Nifty is near the 19,500 round levels. A breakdown from there could take the index down to 19,400 levels. The important resistance to watch out for is the 19,560-600 levels. A breakout from these levels may give us targets of 19,700-740. 

Bank Nifty: The immediate support for BNF is near 44,200 levels. A breakdown could give us targets of 44,000. The index has an important resistance near 44,500 levels. A breakout from there can give us targets of 44,700-750.

Every rise is being sold. So wait for vital reversal levels to be crossed for confirmation of a trend reversal and option buying trades.

As per reports, the increased selling activity by foreign institutional investors (FIIs) is one of the main factors contributing to high volatility in the Indian market. FIIs have sold shares worth nearly ₹12,475 crore in September! The US Federal Reserve's hawkish stance on interest rates has added to the market's anxiety.

How was monthly expiry trading today? Did you trade in Nifty or Bank Nifty (or both)? Let us know in the comments below!

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