Sensex falls for 3rd day, Nifty settles below 11,650. Key levels to watch now1 min read . Updated: 30 Oct 2020, 05:44 PM IST
- Sensex and Nifty finished the week more than 2% lower but posted their best monthly performance since July.
Indian shares today extended losses to the third day amid weak cues from global markets. Rising COVID-19 cases and fresh lockdowns in Europe has spooked sentiment in recent days. The NSE Nifty 50 index ended 0.24% lower at 11,642 after a volatile session. The S&P BSE Sensex closed 0.34% lower at 39,614.07, dragged by bank and financial stocks. Sensex and Nifty rose as much as 0.6% earlier in the session.
Both the indices finished the week more than 2% lower but posted their best monthly performance since July.
"Nifty is tagging the western markets directionally. Hence sentiments need to stabilize in the US/Europe. Improvement in advance decline ratio on Friday is encouraging. While Nifty made a new intraday low, it closed only marginally lower compared to Thursday," said Deepak Jasani, Head of Retail Research, HDFC Securities.
The BSE midcap index rose 0.6% today while the smallcap index ended flat.
Reliance Industries gained 1.3% ahead of its September-quarter earnings due later in the day, and kept losses in check.
Here what analysts said on today's market performance:
Ajit Mishra, VP - Research, Religare Broking Ltd
"Markets would first react to Reliance industries numbers in early trade on Monday i.e. November 2 and then focus would again shift to global cues, thanks to the scheduled US elections. We advising limiting leveraged positions and suggest keeping the existing trades hedged. Defensives viz. FMCG, IT, pharma etc tends to do well in such scenario but selection of stocks is the key due to prevailing earnings season."
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
"The markets broke yesterday's low of 11600 and this makes the Nifty bearish in the short term. Ideally it should fall further and touch 11400-11450 levels. The upside is capped at 11900-11950 so traders can consider a closing above those levels as a stop loss and initiate short positions for a target of 11400."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"The short term trend of Nifty continues to be range bound with weak bias. The lower support of 11600-11550 is going to be crucial for the bulls to hold on their defense. A decisive move below this support is expected to open further weakness down to 11200 levels in the next few weeks. Immediate resistance to be watched for the next week is at 11750-11800 levels."