From mint · Pranati Deva · · 1m 50s
Sensex Weekly Expiry Prediction: Bulls vs Crude Shock
Can Sensex rebound despite crude oil surge? Traders watch key levels as expiry approaches.
In brief
Can Sensex rebound despite crude oil surge? Traders watch key levels as expiry approaches. Sensex may stay range-bound between 73,200, 73,500 support and 74,300, 74,500 resistance amid crude oil price spikes. Originally reported by mint.
Sensex and Nifty Open Lower
The Sensex and Nifty 50 opened lower on Thursday, October 22, extending their losing streak to a third consecutive session.
Crude Oil Prices Surge
Brent crude futures rose 1.6% to $110.6 per barrel after attacks by Yemen's Houthis in Saudi Arabia prompted the US to order some diplomats and their families to leave its missions in the kingdom.
Crude Oil Surge This Year
Brent crude has surged more than 80% this year amid disruptions to persian gulf oil flows caused by the us-iran war.
Impact on India
Higher crude prices pose a significant risk to India, one of the world's largest oil importers, by potentially increasing inflationary pressures and corporate costs.
Asian Equities Weaken
Asian equities also weakened as mixed earnings from major us technology companies renewed concerns about the sustainability of artificial intelligence-related investments.
Sensex Weekly Expiry
Sensex weekly expiry is the day when weekly sensex derivatives contracts, such as futures and options, expire and are settled.
V K Vijayakumar's View
Strong external headwinds in the form of elevated crude prices and high us bond yields are emboldening bears to build short positions in the market.
Key Support Levels
The sensex's immediate direction will depend on whether buyers can defend the 73,200, 73,500 support zone or whether continued selling pushes the index towards lower levels.
Shrikant Chouhan's Prediction
For day traders, the 20-day sma, along with 73700 and 73500, would act as key support zones. If the market sustains above these levels, it could move towards 74000-74500.
The takeaway
Sensex may stay range-bound between 73,200, 73,500 support and 74,300, 74,500 resistance amid crude oil price spikes.
