The NSE Nifty 50 is expected to open mixed to red on Friday, Oct. 23, amid weakness in U.S. markets and a sharp rise in crude oil prices to a five-month high, while technical indicators suggest the benchmark index has key support near the 22,600 zone.
Indian equity benchmarks Sensex and Nifty 50 ended over half a percent lower on Thursday, weighed down by broad-based selling, as persistently elevated crude oil prices and geopolitical tensions continued to dampen investor sentiment.
ALSO READ: IndiGo Q2 Results: Date, Time, Dividend News, Earnings Call Schedule And More
The BSE Sensex declined 460.30 points, or 0.62%, to close at 73,249.39, while the NSE Nifty 50 fell 123.70 points, or 0.54%, to end at 22,687.65. The Bank Nifty index settled at 54,925.70, down 51.20 points, or 0.09%.
Nifty ended the session by forming a doji candle with shadows on both sides, indicating indecision among market participants. The index also slipped below its 20-day simple moving average, positioned near the middle Bollinger Band at 22,760.
According to Om Mehra, Technical Research Analyst at SAMCO Securities, immediate support for Nifty is placed at 22,600, followed by 22,480. On the upside, 22,850 remains the immediate resistance level, followed by the psychological mark of 23,000.
"A move above today's high of 22,785 could signal a short-term trend reversal and open the door for a meaningful recovery, with 23,175 as the next resistance," said Nandish Shah, Deputy Vice President at HDFC Securities.
Shah identified 22,500 as the immediate support level for the benchmark index.
GIFT Nifty Futures were up 0.62% to 22,856.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the 22,580-22,550 zone is likely to act as a crucial support area for Nifty.
"A decisive break below 22,550 could intensify selling pressure and drag the index towards the 22,400 mark in the near term," Shah said.
On the upside, the 22,820-22,850 zone is expected to act as an immediate hurdle. Any sustainable move above 22,850 would indicate strengthening momentum and could trigger a pullback rally towards the 23,000 level, he added.
Bank Nifty
Bank Nifty ended the session at 54,925.70, down 0.09%, after forming an indecisive candle with shadows on both sides following a gap-down opening. Although the index recovered from its intraday low of 54,459, it continues to trade below the middle Bollinger Band positioned near 55,150.
According to Om Mehra, immediate support for Bank Nifty is placed at 54,700, followed by 54,500. On the upside, 55,150 remains the immediate resistance level, followed by 55,500.
Sudeep Shah said the 54,400-54,300 zone is likely to act as an important support area for the banking index.
ALSO READ: Adani Total Gas Q2 Results: Net Profit Jumps 22% To Rs 173 Crore, Margin Expands
"A sustained breach below this zone may invite further selling pressure," Shah said.
On the upside, the 20-day exponential moving average zone of 55,300-55,400 is expected to act as a crucial hurdle for Bank Nifty, he added.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.