Raja Venkatraman recommends two stocks for 23 October

Sell below ₹1,675, stop ₹1,735, target ₹1,550 (Multiday) On 22 October, Indian equities slipped as weak global cues kept sentiment subdued. The market opened lower and remained under pressure through most of the session, with the Nifty briefly falling below 22,600 intraday before recovering from its low of 22,554.85 to close at 22,687.65, down 123.70 points or 0.54 percent. The Sensex also ended in the red, losing 460.30 points or 0.62 percent to settle at 73,249.39.

Selling was broad-based across sectors, reflecting investor caution amid lingering concerns over global growth and elevated bond yields. Despite the late recovery, the overall tone remained defensive, with traders preferring to stay light on positions. Technically, the Nifty’s ability to reclaim levels above 22,650 offered some short-term relief, but resistance remains firm near 22,750–22,800, while immediate support lies around 22,550.

The session highlighted the ongoing tug-of-war between bargain buying and persistent global headwinds, keeping volatility elevated. Technically, the index continues to trade below its short-term moving averages, reflecting a cautious undertone. The Relative Strength Index (RSI) at 43.98 suggests neutral momentum, neither oversold nor overbought, indicating indecision among traders. The Ichimoku cloud analysis shows price action struggling below the cloud, reinforcing bearish bias, though the late recovery above 22,650 provides some near-term relief.

Options data highlighted defensive positioning, with notable call writing at the 22,700 and 22,800 strikes, capping upside potential. On the put side, open interest was concentrated at 22,600 and 22,500, suggesting traders are hedging against further downside while protecting immediate support zones. Market breadth remained weak, with selling pressure across sectors, though selective bargain buying helped indices recover from intraday lows.

Going forward, resistance is seen at 22,750–22,800, while support lies at 22,550–22,500. A sustained move above 22,800 could open room for a technical rebound toward 23,000, but failure to hold 22,550 may invite renewed weakness. Overall, the setup reflects a tug-of-war between cautious sellers and opportunistic buyers, keeping volatility elevated. Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

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