Sensex down 240 points, Nifty at 19,600; Vedanta fell 5%, Century Textiles rose 4%

27 September 2023 / 08:21 am IST

Sensex today Ashwin Ramani, Derivatives and Technical Analyst, SAMCO Securities:

Nifty consolidated between the narrow range of 19,650-19,700 throughout the day and closed at 19,665, down 10 points.

Open Interest (OI) of Nifty futures indicated creation of fresh short positions in index futures for the fourth consecutive day. The long-short ratio has fallen below the 50% mark for the first time since August 30, indicating that foreign portfolio investors (FPIs) now hold more short positions than long positions in index futures.

After today’s trading session, call writers have further strengthened their exposure at 19,700 strike. Nifty has formed back-to-back Doji candles on the daily chart, indicating indecision. If call writers exit 19,700 strike in Nifty then there is a possibility of Nifty going up. Negative support for Nifty is placed at 19,600 level.

Bank Nifty has been consolidating between 44,500-44,800 levels for the last three trading sessions and currently lacks a clear direction. Bank Nifty closed near the 61.8% Fibonacci retracement level of 44,633, rising from the low of 43,600 made on August 16 and the high of 46,310 made on September 15. A breakdown below 44,500 is likely to pull the index towards 44,000 levels where its next visible support is placed, while a close above 44,800 is likely to revive buying interest. Bank Nifty fell 142 points to close at 44,624.

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