Synopsis
Indian markets traded lower on Thursday amid ongoing volatility and monthly expiry pressures. Analyst Rahul Sharma flagged Nifty’s 24,600 level as key, noting that selling on rises could continue. Bank Nifty may see short covering if key levels hold.
ETMarkets.com The Nifty tested the 24,500 mark in early trade on Thursday before bouncing back on intraday charts. Indian equity markets traded on a cautious note on Thursday, reflecting ongoing volatility and the typical pressures associated with the monthly expiry. Speaking to ET Now, market analyst Rahul Sharma described the past one and a half sessions as a “roller coaster ride” and highlighted key levels for investors to watch.
Sharma noted that the GST day gap had been filled. The Nifty tested the 24,500 mark in the morning before bouncing back on intraday charts. “For today’s expiry, bears have dominated the market, mainly because foreign institutional investors (FIIs) are taking short positions,” he said.
According to Sharma, the 24,600 level is important for the second half of the trading session. “If we stay below this, we could revisit 24,500 and possibly 24,450. On the other hand, if we manage to hold above 24,600 over the next one to one and a half hours, there is a good chance we may rise toward 24,750 by the end of the day,” he added. Sharma emphasised that volatility is likely to continue throughout today’s large expiry, with the current market setup favouring selling on rises.
When discussing sector performance, Sharma pointed out that Bank Nifty’s put-call ratio recently hit a one-year low. This suggests that the morning sell-off may have been an overreaction. “At 54,000, the risk-reward isn’t favourable for new short positions. Even if you don’t buy, that’s okay, but any bounce back can lea
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