India’s Nifty 50 lost 2.36% over four trading sessions through Oct. 23, putting a 22,300 support level in focus. Foreign investors were net sellers across the five sessions from Oct. 16 through Oct. 23.
The benchmark closed at 22,600, down 546.15 points from its Oct. 16 close of 23,146.15, according to National Stock Exchange (NSE) data. The NSE calendar lists Oct. 20 as a Dussehra trading holiday, leaving four sessions between those closes.
Provisional NSE cash-market figures show foreign portfolio investors (FPIs) were net buyers of ₹887.65 crore (₹8.88 billion) on Oct. 23. Across the five sessions from Oct. 16 through Oct. 23, however, FPIs were net sellers of ₹1,531.45 crore (₹15.31 billion), a total calculated from daily figures. The exchange says the flow data can be revised. The one-day purchase did not erase the net selling over the broader period.
In an interview reported by The Economic Times, Sudeep Shah, vice president and head of technical and derivatives research at SBI Securities, said the Nifty 50 remained below key moving averages and its daily relative strength index was approaching 40. Shah put support between 22,350 and 22,300, saying a sustained move below 22,300 could expose 22,000. He identified immediate resistance at 22,800 to 22,850, near the 20-day exponential moving average.
Shah said the foreign institutional investor long-short ratio in index futures had stayed between 8% and 11% since early October. He saw “no strong signs of short covering in index futures,” according to The Economic Times.
Shah also described Nifty IT as relatively strong. The index rose 2.88% on Oct. 21 while the Nifty 50 fell 0.34%, according to an earlier EconoTimes report. That divergence came before the Nifty 50’s four-session decline ended Oct. 23.
