Market Overview
The Indian stock market witnessed significant declines on October 22, 2024, with the Nifty 50 index dropping below the crucial 24,700 mark. Following disappointing Q2 results for 2024 and aggressive selling by foreign institutional investors (FIIs) and local investors, the market ended lower for the third consecutive session. The Nifty 50 index lost 309 points, closing at 24,472, while the BSE Sensex fell by 930 points to settle at 80,220. The Nifty Bank index also experienced a sharp decline, nosediving 705 points to end at 51,257. Both Mid-cap and Small-cap indices faced severe selling pressure, falling between 2.5% to 3.8%.
Sensex and Nifty Analysis
The bearish sentiment in the market is evident as the Nifty 50 index has breached critical support levels. According to Taparia, immediate support for the Nifty is now at 24,300, while resistance is seen at 24,600. The Bank Nifty is expected to trade within a range of 50,700 to 51,600. If the Nifty breaks below the support level of 24,000, it may test further lows around the 200-period moving average (MA) at approximately 23,300.
Recommended Stocks
- City Union Bank:
- Current Price: ₹168
- Stop Loss: ₹162
- Target: ₹182
City Union Bank’s stock opened strong today, indicating bullish momentum in the market. The MACD indicator has shown a bullish crossover, confirming that the stock’s trend is upward.
- ICICI Bank:
- Current Price: ₹1,267
- Stop Loss: ₹1,225
- Target: ₹1,360
ICICI Bank has broken out of its consolidation zone on the daily timeframe with increased buying volume. The RSI indicator has crossed above its centerline and is trending upward, suggesting continued upward momentum.
Additional Insights
In light of the ongoing market volatility, Taparia also advised caution regarding other stocks like UPL. He suggested selling UPL futures due to signs of weakness in its price action.
Conclusion
Investors should consider Chandan Taparia’s recommendations for City Union Bank and ICICI Bank as potential opportunities amidst the current market challenges. With the bearish trend in play, it’s crucial for traders to monitor their positions closely and adhere to stop-loss levels to manage risk effectively.
