Nifty 50, Sensex today: What to anticipate from October 23 trading on the Indian stock market

Indian stock market indices, Sensex and Nifty 50, are likely to open on a tepid note on Wednesday amid mixed global market cues.

The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading at around 24,550  levels, a premium of nearly 10 points from the previous close of the Nifty Futures.

On Tuesday, the domestic equity indices witnessed a strong selloff and ended sharply lower by over a percent each.

The Sensex crashed 930.55 points, or 1.15%, to close at 80,220.72, while the Nifty 50 settled 309.00 points, or 1.25%, lower at 24,472.10.

Nifty 50 formed a long bear candle on the daily chart, indicating an attempt at a decisive downside breakout of 24,600–24,500 levels.

“After the formation of a series of higher tops and bottoms on the daily chart in the last few months, Nifty 50 is currently weakening after forming a new lower top around 25,230 levels. This is a negative indication and signals ongoing downward correction. Another crucial weekly cluster support around 24,500 (ascending trend line, 23.6% retracement, and weekly 20-period EMA) is placed on the verge of a downside breakout,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short-term trend of Nifty 50 continues to be negative, and a decisive move below 24,500–25,450 levels is likely to open the next downside target of 24,000. Any rise up to the immediate resistance of 24,700 could be a selling opportunity, he added.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

Nifty Open Interest (OI) data shows the highest OI on the call side at the 24,600 and 24,700 strike prices, signaling strong resistance levels. On the put side, OI is concentrated at the 24,400 and 24,300 strike prices, highlighting these as key support levels, said Hardik Matalia, Derivative Analyst at Choice Broking.

According to Dr. Praveen Dwarakanath, Vice President of Hedged.in, options writer’s data for this month’s expiry showed increased call writing at 24,500 and above levels and short covering in ITM puts, indicating downside momentum to continue.