StockEdge's Morning Market Update - 24th Oct

Nifty lost 36 points over the day, closing at 24,435. The market opened with a gap down, saw some recovery, but couldn’t sustain, ending near the lows. The IT index led gains, while small-cap and mid-cap indices bounced after previous day’s losses. FIIs continued to be net sellers.

Technical Overview: The Dollar Index rose to 104.5 levels, with Indian equities underperforming global markets. Rallies are consistently sold into, and the charts reflect instability. Lower lows and weak momentum indicators like MACD and RSI show no signs of reversal. Moving averages indicate a negative crossover, and Nifty is expected to test 24,000. The 24,750 zone now acts as a significant resistance. Any strength can only be confirmed on a close above this level.

Sector Overview: Most sectors look weak, including pharma, which has broken its support levels. The IT index remains sideways.

Conclusion: The market remains weak, with support at 24,350 and 24,000.

Nifty:

• Support: 24,350, 24,000
• Resistance: 24,575, 24,640

Bank Nifty:

• Support: 51,100, 50,600
• Resistance: 51,500, 51,700

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