Stock market drops for second day as oil prices stay high and tensions rise

The Nifty 50 index fell 0.34 percent to close at 22,811 on Wednesday, October 21, marking its second straight session of losses. High oil prices above 110 dollars per barrel and growing tensions between the US and Iran drove the cautious market sentiment.

Trading Levels

Amol Athawale, VP of Technical Research at Kotak Neo, noted that the daily chart formed a bearish candle with an intraday lower-top pattern. Day traders should watch the 20-day simple moving average along with 22,800 and 22,750 as key support zones. The market could recover toward 22,950 to 23,000 if it stays above these levels, but selling pressure below 22,750 may push it down to 22,600 or 22,550.

Stock Picks

Athawale recommends three stocks for the next one to two weeks. For Persistent Systems, positional traders should watch the key level of 5,650 rupees, with an upward target of 6,260 rupees. For ONGC, a stay above 217 rupees could push the stock toward 240 rupees following a rounding bottom pattern. For Godrej Consumer Products, sustaining above 828 rupees could confirm a reversal and drive the price toward 920 rupees.

Context

Stock market benchmarks like the Nifty 50 track the performance of top companies listed on the National Stock Exchange of India. Global factors like crude oil prices and geopolitical events often influence daily trading movements and investor sentiment.