Sensex, Nifty Crash: Will Stock Market Open In Green Or Red On Wednesday, October 23, 2024? Next Target

Stock Market October 22, 2024: Sensex and Nifty crashed on Tuesday, closing by more than 1% each. It was a bloodbath across indices, with over Rs 9 lakh crore erosion in investors' wealth. Heightened volatility, massive selling in midcaps, small-caps and large-caps, coupled with FII outflow and a sharp spike in US bond yields that dulled the hopes of aggressive rate cuts from the Fed - were some of the key factors to pushed markets off the cliff. On Wednesday, bearish candlesticks still pertain to domestic equities. The next key target for Nifty is 24,000 levels.

The Indian stock markets took a severe beating on October 22, as a relentless wave of selling dragged the benchmarks to their lowest levels since mid-August. The Nifty 50 breached the critical 24,500 mark, closing at 24,472, while the Sensex plummeted by 931 points to close at 80,221. Investors saw massive capital erosion, losing Rs 13 lakh crore over the last two trading sessions, as market sentiment remained firmly negative.

Hardik Matalia, Derivative Analyst at Choice Broking said, on the daily chart, the Nifty index faced selling pressure at higher levels, forming a strong bearish engulfing candle and closing below the 24,500 mark. This signals market weakness and suggests a continuation of the downtrend. Immediate support is seen at 24,400, and if breached, it could lead to a decline toward the 24,200-24,000 range. On the upside, resistance is identified at 24,600-24,750, where selling pressure may re-emerge. A "sell-on-rise" strategy is advisable, with stop-losses placed above these resistance levels. Traders should be cautious in holding any long positions, as the close below 24,500 confirms further downside momentum. Until the index decisively moves above 25,000, the risk of continued selling pressure remains high. In this volatile environment, caution and strict risk management are essential.

Further, Matalia added, "The India VIX increased by 4.60% to 14.3950, indicating a rise in market volatility and growing uncertainty, which could lead to increased price fluctuations. This makes it important for traders to remain cautious. Open Interest (OI) data shows the highest OI on the call side at the 24,600 and 24,700 strike prices, signalling strong resistance levels. On the put side, OI is concentrated at the 24,400 and 24,300 strike prices, highlighting these as key support levels."