Wed Nov 20 04:00:00 UTC 2024: ## Indian Equities Recover Slightly Amidst Maharashtra Elections, But Downtrend Persists
**Mumbai, India** – Indian equities experienced a modest rebound on Tuesday, following a significant decline, as Maharashtra state elections unfolded. However, despite the slight recovery, the benchmark Nifty50 index remains below its crucial 200-day moving average (DMA) of 23,574, closing at 23,518.5 – a 0.28% increase.
The index has fallen 11% from its September 27 peak of 26,277.35, a drop attributed to factors including continued foreign institutional investor (FII) sell-offs, a strengthening dollar, and rising yields – even with relatively favorable crude oil prices ($70-$73.5 per barrel).
Experts largely predict a continuation of the downward trend in the short term. Asit C. Mehta Investment Intermediates Ltd. notes a “doji candle” formation on Monday’s chart, signaling market uncertainty. Resistance is anticipated around 23,780-23,800, while support is seen near the 50-week simple moving average (WSMA) of 23,300. The overall short-term outlook remains bearish until the index breaches 23,800. Geopolitical tensions between Ukraine and Russia could further exacerbate sell-offs.
Conversely, the Bank Nifty index performed relatively better, holding above its 200-day exponential moving average (around 49,900) and partially supporting the Nifty’s slight recovery. Support for Bank Nifty is seen at 49,800-50,000, while resistance lies between 50,800 and 51,500.
First Piper 