Immediate support for Nifty at 22,000?Experts outline key levels to watch post market crash

The S&P BSE Sensex ended 4,389.7 points or 5.74 percent lower at 72,079 whereas the NSE Nifty 50 closed 1,379.4 points or 5.93 percent lower at 21,884.5.

Meanwhile, in intraday deals, Sensex tanked 6,234.35 points or 8.15 percent to 70,234.4 whereas Nifty crashed 1.982.45 points or 8.52 percent to 21,281.4, the highest intraday fall in the last 4 years, since March 23, 2020.

Read here: Markets down 5%: Here’s how markets have performed on previous election result days

Going ahead, experts outline the key support and resistance levels to watch.

Choice Broking

On June 4, during vote counting day, Indian benchmark indices experienced significant losses, with the Sensex dropping 4,389.73 points, or 5.74%, to 72,079.05, and the Nifty falling 1,379.40 points, or 5.93%, to 21,884.50. The Lok Sabha election results had a pronounced impact on the market, reflecting the intense political competition. Initial market optimism was based on expectations of a strong performance by the NDA, which currently holds 295 seats, while the INDIA alliance has 229 seats, indicating a closely contested election. 

Following a sharp 1,200-point drop, the Nifty exhibited a volatile range between 21,200 and 23,200, resulting in a significant spread of over 2,000 points. The index formed a substantial bearish candle, with key support levels identified at 21,400 and 21,200. If these levels fail to hold, the next supports are at 20,800 and 20,300. On the upside, the Nifty needs to break above 22,800 and 23,000 to regain strength and potentially reach new all-time highs of 23,500 and 23,700.

Ajit Mishra, SVP- Research, Religare Broking

Markets plunged sharply today, erasing the gains of the past four months. On the index front, Nifty has retested its major support zone at the long-term moving average, the 200 DEMA, after eight months, around 21,280, followed by some recovery. We expect high volatility to persist in the near future, so participants should limit their trades and wait for more stability. However, investors can take this opportunity to accumulate quality stocks available at attractive prices.

Read here: Election results: Markets crack 5%! Is today’s fall an opportunity for long-term investors? Experts advise strategy

Key levels to monitor for Nifty a closing basis for tomorrow are:

Nifty: Support at 21,200-21,400 and Resistance at 22,400-22,600

Vaibhav Jain, Head of Content & Education, Share.Market

We are seeing Nifty 50’s support at 21,700 and 21,100. Currently, the Nifty 50 is hovering around 22,000 and a close above 21,700 would be a good point to consider taking long positions.

On the upper side, 22,800 acts as the first resistance where we might see some profit booking, post which all-time high of 23,338 will be a crucial point to break to see further upside.

Read here: Nifty Midcap 100 suffers sharp decline of over 6,000 points, hits 11-week low

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates

Technically, Nifty will find support near 21,250, where the 200-DEMA is located, and resistance near 23,340 levels in the short term.

In summary, the market’s reaction to the election results has introduced significant volatility, with various analysts highlighting key support and resistance levels to monitor. Investors are advised to proceed cautiously, with opportunities to buy quality stocks during this period of uncertainty.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 04 Jun 2024, 04:02 PM IST