Nifty Faces Pressure from Global Tech Sell-off and Weekly Expiry After Holiday

The Nifty index has experienced a notable pullback, declining over 2% from its recent peak after coming within striking distance of a record high. This retreat in the Indian stock market can be attributed to several factors affecting investor sentiment.

Market Performance

Indian equities resumed trading Thursday after a mid-week holiday, facing pressure from global market volatility. The Nifty closed at 25,600 after failing to sustain support at the 25,650-25,700 range, with potential downside to 25,508, the low recorded on October 17. This decline brings the Nifty about 170 points shy of its all-time high.

Factors Influencing the Market

Several key factors are contributing to the current market dynamics:

Global Tech Sell-off: A significant sell-off in global semiconductor stocks has reportedly wiped out $500 billion due to valuation concerns, impacting overall market sentiment.
Weekly Expiry: Thursday marks the first weekly expiry of Sensex contracts for the November series, which may add to market volatility.
Banking Sector Performance: Nifty Bank, which had closed above 58,000 on Monday, failed to build on gains despite SBI's recovery after results.
Corporate Earnings: Multiple companies including Sun Pharma, Britannia, Paytm, IndiGo, Apollo Hospitals, and Bajaj Housing Finance are expected to react to earnings results.
Management Changes: Asian Paints and Grasim are in focus following the resignation of Birla Opus CEO.

Market Analysis

Analysts suggest key technical levels to watch:

Support Levels	Resistance Levels
25,500-25,430	25,750-25,800

For Nifty Bank, 57,700-57,730 serves as the first defense line with 58,000 as the upside target.

Outlook

While the market is experiencing some headwinds, investors may need to remain cautious and vigilant. The global tech sell-off, coupled with domestic factors such as weekly expiry and corporate earnings, may continue to influence market movements in the short term.

As the market navigates through this period of volatility, keeping an eye on global cues, particularly developments in the tech sector and domestic corporate performance, will be crucial for understanding future market trends.

The Nifty index, after a two-month rally, appears to be consolidating around the 26,100 level, close to its record highs. Technical analysts are presenting varied perspectives on the market's future direction, offering insights for traders and investors.

Mixed Analyst Opinions

Technical analysts are divided in their outlook for the Nifty:

Analyst	Outlook	Key Levels	Targets
Sameet Chavan (Angel One)	Optimistic	Support: 25,500-25,600	26,000, 26,300, 26,600
Dhupesh Dhameja (Samco Securities)	Bearish	Resistance: 26,100	25,600-25,500
Somil Mehta (Mirae Asset)	Positive	Support: 25,500-25,600	26,300

Technical Indicators

Bullish Signals

Strong support identified around 25,500-25,600
Expectations that declines will be bought into

Bearish Signals

Shooting Star pattern observed
Potential double-top formation near 26,100

Key Support Levels

All analysts agree that crucial support for the Nifty lies in the range of 25,300-25,500. A breach below these levels could potentially trigger further weakness in the market.

Trading Strategies

Bullish Approach: Buy on dips with targets of 26,000, 26,300, and 26,600
Bearish Approach: Adopt a sell-on-rise strategy with targets of 25,600-25,500

Stock Recommendations

Analysts have suggested the following stocks for potential trading opportunities:

IDFC First Bank
Pratap Snacks
ONGC
MCX
Glenmark Pharma
TCS

Investors and traders are advised to conduct their own research and consider their risk appetite before making any investment decisions based on these recommendations.

As the Nifty continues to consolidate near its record highs, market participants should remain vigilant and adapt their strategies according to the evolving market conditions and their individual financial goals.