Sensex falls 400 pts from day's high, Nifty near 22,700: Key reasons behind market decline

Benchmark indices Sensex and Nifty declined from day's high due to various reasons, including profit booking and selling in IT shares. At 1:13 pm, the Sensex was down 230.03 points or 0.31% at 73,376.72, and the Nifty was down 46.95 points or 0.21% at 22,706.25. About 2,667 shares advanced, 1,164 shares declined, and 162 shares were unchanged. Key reasons behind market decline Profit booking emerged at higher levels as markets rose for second straight day. 2) Selling in IT shares Nifty IT index fell 1.5% on October 27 as Anthropic PBC’s initial public offering filing offered a much-needed sentiment boost to the AI trade, bolstering semiconductor stocks in South Korea and Japan. Nifty needs to sustain above 22,800 for any bullishness to return to the markets, said analysts. "Follow through strength above 20 days EMA placed at 22,820 will signal further pullback towards the key resistance area of 23,100-23,200 being the confluence of last week high and 50 days EMA. Failure to move above 22,820 will signal extension of the last two sessions consolidation in the range of 22,370-22,820," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking. "22,600/73,000 is now the first crucial support, followed by 22,500/72,800. As long as these support levels hold, the pullback rally could extend towards 22,800/73,800. A sustained breakout above this resistance could open the way towards 23,000/74,500. Conversely, a fall below 22,600/73,000 would weaken the bullish setup and warrant caution on long positions," said Shrikant Chouhan, Head Equity Research, Kotak Neo. "As long as dips are contained above 22,630, we will remain interested in an upside play aiming for 23,000 or even 23,500, with volatility expectations once inside the 22,800-900 region. Alternatively, inability to float above 22,630 could expose 22,250-22,000, but a collapse is less expected," said Anand James, Chief Market Strategist, Geojit Investments Limited.

Sensex falls 400 pts from day's high, Nifty near 22,700: Key reasons behind market decline

Related Articles

Trade Setup for November 4: Top 15 things to know before the opening bell

Markets extend gains for fourth day; FPI buying highest in a year

Taco Bell sales fall more than expected on cyclosporiasis outbreak hit

Trending Now

Latest News

Related Articles

Trade Setup for November 4: Top 15 things to know before the opening bell
Nifty 50 may be reclaiming its 200-day EMA, placed around 23,900, in the coming sessions. A sustained move above this le…

Markets extend gains for fourth day; FPI buying highest in a year
Nifty up 1.6% on favourable earnings, festival demand

Taco Bell sales fall more than expected on cyclosporiasis outbreak hit
Yum Brands faced a setback in the third quarter as Taco Bell reported declining sales, primarily due to a cyclosporiasis…