Nifty sheds 260 points, marking the fourth biggest fall in CY2023, and closed below the 100-SMA!

Nifty50, the widely traded index in India, ended the day with a significant fall of 260 points or 1.35% from its Friday’s closing levels.

The Nifty50 index opened the day at 19,522, which was down by 21 points compared to Friday’s closing level of 19,543. It reached intraday highs and lows of 19,557 and 19,258, respectively, and eventually concluded the day at 19,282. Meanwhile, the BSE Sensex closed at 64,572, marking a decline of 826 points from Friday’s closing level.

Today’s fall marks the fourth-biggest decline recorded in the index during the year 2023. The largest fall occurred in January 2023, with a drop of 1.61%, concluding the day at 17,604. The second largest fall was registered in the following month, on February 22, 2023, with a decline of 1.53%, closing the day at 17,755. Prior to today’s fall, which is the fourth one in the countdown, the third largest decline occurred in March, with a 1.49% drop on that day.

On the daily time frame, the Nifty50 index was trading below the 20 and 50-SMA, and today it broke and closed below the 100-SMA. Tomorrow will be a holiday, and the market will remain closed for Dussehra. However, this is the last week of the current month for the expiration of monthly contracts, with the expiration day falling on the last Thursday, which is October 26, 2023. 

According to the open interest data, as per the NSE the total Call OI is 31.69 lakhs, while on the Put side, it is 18.23 lakhs. The option chain suggests the highest open interest on the call side is at 19,600 and 19,500, and on the Put side, it’s at 19,000 and 19,200. These levels may act as support and resistance for the upcoming trading session.

Now, let’s turn our analysis toward today’s biggest losers and gainers in the Nifty50 index. Among all the fifty stocks, only two closed the day in the green, which is Mahindra and Mahindra Limited and Bajaj Finance, with a mere 0.18% and 0.07% gain, respectively. Whereas the remaining 48 stocks closed the day in the red, with four stocks falling by more than 3% during today’s session. The biggest loser was LTI Mindtree Limited, which fell by 3.92%. The second-largest fall was seen in Adani Enterprises, down by 3.71%, while the third and fourth-largest declines were in Hindalco Limited and JSW Steel Limited, with drops of 3.07% and 3.03%, respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.