No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, October 30, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

F&O Talk| Trade turmoil triggers technical breakdown: Nifty sheds 1,000 pts in 8 sessions. Sudeep Shah weighs in

by TheAdviserMagazine
7 months ago
in Business
Reading Time: 5 mins read
A A
F&O Talk| Trade turmoil triggers technical breakdown: Nifty sheds 1,000 pts in 8 sessions. Sudeep Shah weighs in
Share on FacebookShare on TwitterShare on LInkedIn


Benchmark indices Sensex and Nifty 50 fell sharply by 2.6% each last week, with the Nifty slipping below the crucial 23,000 level to close at 22,904, amid a broad-based global sell-off fueled by U.S. President Trump’s tariff actions and renewed concerns over a potential economic slowdown.

The broader market was not spared either, as the Nifty Midcap100 dropped 2% and the Nifty Smallcap100 declined 2.6%, reflecting widespread investor caution.

IT stocks bore the brunt, plunging 9% on worries over a potential cutback in U.S. tech spending, while the Nifty Metal index sank 7.5%, weighed down by fears of escalating global trade tensions. Meanwhile, both the auto and pharma sectors recorded declines of 3% each.

With this, analyst Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research at SBI Securities interacted with ET Markets and his outlook on Nifty and Bank Nifty for the upcoming week. Following are the edited excerpts from his chat:

Despite weak global cues and tariff-related jitters, the Indian market tried showing resilience and held key levels. However, today, there was a downturn. How do you now interpret the price action from an options market perspective—do you see a further downside?

Live Events

Global markets were rattled this week as a wave of risk-off sentiment swept across equities, triggered by the imposition of reciprocal tariffs on the U.S. trade partners. The escalating trade tensions have reignited fears of a slowdown in global economic activity. As Wall Street tumbled and Asian indices followed suit, the ripple effect reached Indian shores, with the Nifty reacting sharply to the global sell-off. But beneath the headline noise, what are the charts really telling us?Recently, the benchmark index Nifty has failed to sustain above its prior swing high and thereafter started witnessing gradual selling pressure. From the recent high of 23,870, the index has tumbled by over 1,000 points in just 8 trading sessions. Along with this fall, the index has slipped below its short and long term moving averages, which is a sign of weakening momentum. Adding to the bearish sentiment, the daily RSI is trading below its 9-day average, and the fast stochastic has slipped below the slow stochastic line. Together, these signals point to a clear loss of bullish strength and suggest that bearish momentum is currently in play. Sector-wise, the broader market is also under pressure. Barring a few pockets like private banks, select financial services, and FMCG, most sectoral indices are trending lower. In light of this, a cautious approach is advisable over the next few sessions.

Nifty formed a bullish candle on Thursday after taking support at the 50-DEMA near 23,130. But today, it traded below 20 and 50 DEMA, what may be the next levels to watch out?

Talking about crucial levels, the zone of 22,400-22,350 will act as immediate support for the index. If the index slips below the 22,350 level, then we may witness a further correction upto the 21,900 level in the short term. While, on the upside, the 20-day EMA zone of 23,100-23,120 will act as a crucial hurdle for the index.

For Bank Nifty, it seems to be at a crucial resistance. Do you see potential for a breakout, or may there be a risk of a double top? and how should traders approach it?

Bank Nifty has been consistently outperforming the frontline indices over the past few trading sessions. While the Nifty has declined over 2.50% this week, Bank Nifty has remained relatively resilient, shedding just 0.12%. Notably, the ratio chart of Bank Nifty versus Nifty has hit a 67-week high, signaling continued outperformance. The index is also holding firm above its short and long-term moving averages, with the daily RSI comfortably placed in bullish territory.

This overall chart structure suggests that bullish momentum remains intact for Bank Nifty. Talking about crucial levels, the zone of 52,000-52,100 will act as an immediate hurdle for the index. While, on the downside, the zone of 50,800-50,700 will act as a crucial support for the index. If the index slips below the 50,700 level, then we may witness a correction upto the 50,000 level.

The broader market outperformed on Thursday, with both Nifty Midcap 100 and Smallcap 100 closing in the green. However, this also reversed today. How do you read this?

The Nifty Midcap and Nifty Small Cap 100 were outperforming frontline indices till Thursday, but they both witnessed a gap-down opening on Friday and thereafter witnessed a sharp correction With this correction, they both have slipped below their 20 and 50 day EMA level. The momentum indicators and oscillators are also suggesting bearish momentum in the index. Hence, we believe they are likely to slide into the period of consolidation along with bearish bias for the next couple of trading sessions.

Are there any small or mid cap names that came in your observation for the traders to take positions?

We recommend avoiding the Mid and Small cap space for the next couple of trading sessions.

Pharma sector is under a lot of confusion due to the traiff scenario. What’s your take on the sector?

The pharma sector is currently facing a lot of uncertainty, largely due to the ongoing tariff scenario, which has created confusion. From a technical standpoint, the Nifty Pharma index witnessed a sharp decline on Friday, slipping below both its short and long-term moving averages. Momentum indicators are also signaling a bearish undertone, suggesting that the sector could remain under pressure in the near term. Until clarity emerges on the policy front, we recommend a cautious approach to this space.

Any opportunities there on the up or down side?

Technically, the stock of Marico is in a bullish trend. While metal stocks like Hindalco, VEDL, Jindal Steel, Tata Motors, KEI, and LTIM are in bearish trend.

IT and Auto remain under pressure due to U.S. slowdown fears and tariff impact. Do you see further downside risk in these sectors, and what’s the best bets play here?

Both the IT and Auto sectors are clearly feeling the heat from mounting concerns over a potential U.S. economic slowdown and the impact of the ongoing tariff developments. Technically, both sectors are in a firm downtrend, trading below their key short and long term moving averages. Momentum indicators further confirm the prevailing bearish sentiment.

Most notably, the Nifty IT index has witnessed a fresh breakdown, indicating the possibility of further downside in the near term. In light of these technical signals, we believe it is prudent to avoid fresh positions in both sectors for now and wait for signs of price stability or a trend reversal before considering any buying opportunities.

Any sectors you wish to bring into the limelight?

Technically, Nifty IT, Pharma, Healthcare, Automobile, Metal, Oil & Gas are in a strong downtrend.

While, Nifty Private Bank, Financial Services, and FMCG are relatively outperforming the frontline indices.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)



Source link

Tags: BreakdownNiftyptsSessionsShahShedsSudeepTalktechnicaltradetriggersturmoilweighs
ShareTweetShare
Previous Post

Links 4/5/2025 | naked capitalism

Next Post

Arthur Hayes Urges Buying Bitcoin & Gold as US Dollar Collapses Arthur Hayes Urges Buying Bitcoin & Gold as US Dollar Collapses

Related Posts

edit post
AI capex boosts from tech giants should benefit Credo, Micron, others: BNP Baripas

AI capex boosts from tech giants should benefit Credo, Micron, others: BNP Baripas

by TheAdviserMagazine
October 30, 2025
0

Oct. 30, 2025 12:03 PM ETMicrosoft Corporation (MSFT) Stock, GOOG Stock, GOOGL Stock, META StockCIEN, AMD, STX, WDC, NVDA, CLS,...

edit post
The uncomfortable secret of successful people: Forget work-life balance, you have to be ‘obsessed’, ex-Wall Streeter and business coach says

The uncomfortable secret of successful people: Forget work-life balance, you have to be ‘obsessed’, ex-Wall Streeter and business coach says

by TheAdviserMagazine
October 30, 2025
0

While casual side hustles can sometimes pay off, the most successful people prioritize their passion to turn it into profit. ...

edit post
Motilal Oswal Q2 Results: PAT plunges 68% YoY to Rs 362 crore, but posts record operating profit

Motilal Oswal Q2 Results: PAT plunges 68% YoY to Rs 362 crore, but posts record operating profit

by TheAdviserMagazine
October 30, 2025
0

Motilal Oswal Financial Services Ltd (MOFSL) reported 68% year-on-year (YoY) decline in its consolidated net profit at Rs 362 crore....

edit post
India to approve deals worth .7b for Israeli defense missiles

India to approve deals worth $3.7b for Israeli defense missiles

by TheAdviserMagazine
October 30, 2025
0

India's Defense Procurement Procedure Administration, headed by Minister of Defense Rajnath Singh, will meet on November 23 to approve...

edit post
TAQA to sell 250MW lignite power plant to India’s MEIL Energy

TAQA to sell 250MW lignite power plant to India’s MEIL Energy

by TheAdviserMagazine
October 30, 2025
0

Abu Dhabi National Energy Company (TAQA) has agreed to sell its entire stake in TAQA Neyveli Power Company to India-based...

edit post
Trinity Industries GAAP EPS of alt=

Trinity Industries GAAP EPS of $0.38, revenue of $454M (NYSE:TRN)

by TheAdviserMagazine
October 30, 2025
0

Trinity Industries press release (TRN): Q3 GAAP EPS of $0.38. Revenue of $454M (-43.2% Y/Y). 2025 Guidance Industry deliveries of...

Next Post
edit post
Arthur Hayes Urges Buying Bitcoin & Gold as US Dollar Collapses Arthur Hayes Urges Buying Bitcoin & Gold as US Dollar Collapses

Arthur Hayes Urges Buying Bitcoin & Gold as US Dollar Collapses Arthur Hayes Urges Buying Bitcoin & Gold as US Dollar Collapses

edit post
Tariff shock turns FIIs to sellers in April. Analysts flag global risk but back India’s fundamentals

Tariff shock turns FIIs to sellers in April. Analysts flag global risk but back India’s fundamentals

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Another Violent Outburst – Democrats Inciting Civil Unrest

Another Violent Outburst – Democrats Inciting Civil Unrest

October 24, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
The Factor Mirage: How Quant Models Go Wrong

The Factor Mirage: How Quant Models Go Wrong

0
edit post
Trump cuts fentanyl tariffs on China to 10% as Beijing delays rare earth curbs

Trump cuts fentanyl tariffs on China to 10% as Beijing delays rare earth curbs

0
edit post
Flutterwave, Polygon Team Up on Africa Stablecoin Payments

Flutterwave, Polygon Team Up on Africa Stablecoin Payments

0
edit post
Russian Oil Tanker Turns Back Under U.S. Sanctions Threat

Russian Oil Tanker Turns Back Under U.S. Sanctions Threat

0
edit post
Young Canadians sue CPP Investments over climate risks

Young Canadians sue CPP Investments over climate risks

0
edit post
Johnson & Johnson: Defensiver Basiswert mit Innovationshebel korrigiert zum EMA-50!

Johnson & Johnson: Defensiver Basiswert mit Innovationshebel korrigiert zum EMA-50!

0
edit post
Trump cuts fentanyl tariffs on China to 10% as Beijing delays rare earth curbs

Trump cuts fentanyl tariffs on China to 10% as Beijing delays rare earth curbs

October 30, 2025
edit post
Flutterwave, Polygon Team Up on Africa Stablecoin Payments

Flutterwave, Polygon Team Up on Africa Stablecoin Payments

October 30, 2025
edit post
How advisors are using AI tools for prospecting and growth

How advisors are using AI tools for prospecting and growth

October 30, 2025
edit post
Chart of the Week: The Fed’s AI Singularity Wake-Up Call

Chart of the Week: The Fed’s AI Singularity Wake-Up Call

October 30, 2025
edit post
Johnson & Johnson: Defensiver Basiswert mit Innovationshebel korrigiert zum EMA-50!

Johnson & Johnson: Defensiver Basiswert mit Innovationshebel korrigiert zum EMA-50!

October 30, 2025
edit post
AI capex boosts from tech giants should benefit Credo, Micron, others: BNP Baripas

AI capex boosts from tech giants should benefit Credo, Micron, others: BNP Baripas

October 30, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Trump cuts fentanyl tariffs on China to 10% as Beijing delays rare earth curbs
  • Flutterwave, Polygon Team Up on Africa Stablecoin Payments
  • How advisors are using AI tools for prospecting and growth
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.