Market Volatility Deepens as Nifty Falls for Seventh Straight Week

Indian stock markets ended the September 21 to 25 week on a weak note due to high market uncertainty. The Nifty fell sharply, pushed down by rising global bond yields, crude oil prices crossing one hundred dollars, a weaker rupee, and selling across financial stocks. The India VIX also moved higher, and the index has now dropped for seven weeks in a row, which is its longest losing run since the COVID pandemic. During intraday trade on Monday, September 28, the Nifty fell 1.4 percent to hit a low of 22,807. Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted that the index is trading below the crucial 23,000 support level. On the higher side, 23,300 to 23,600 acts as the key resistance zone, while 23,000 to 22,700 serves as the broader support zone. Bank Nifty is also facing pressure near 55,500, with 55,000 acting as the next major support level.

Stock Picks

For short-term trading, Jigar S. Patel suggests looking at specific companies. Jindal Stainless is showing strength after finding support near its important 200-DEMA, with daily and weekly RSI staying above the 50 level. Traders can buy the stock with a stop loss at 725 rupees and an initial target of 800 rupees. Mahindra and Mahindra is showing signs of a potential bullish reversal with a bullish engulfing pattern near its previous demand zone. Traders can buy M and M with a stop loss at 2,950 rupees and a target of 3,180 rupees. On the other hand, Adani Enterprises is showing weakening momentum with a bearish divergence in RSI and a negative cross in the 10 and 20 DEMA structure. Traders can consider selling Adani Enterprises in the 2,950 to 2,900 rupees zone, with a stop loss at 3,050 rupees and a target of 2,650 rupees.

Context

Short-term trading strategies rely heavily on technical indicators like moving averages, support zones, and momentum oscillators to predict price movements over a period of days or weeks. Market volatility often increases when macroeconomic factors like crude oil prices, currency fluctuations, and global bond yields shift rapidly, leading analysts to watch key technical levels closely for trading cues.