Dalal Street Corner: Freefall for markets on Thursday; What should investors do on Friday
On the back of monthly series expiry and select FIIs (foreign institutional investors) downgrading the Indian have led the market sell-off on Thursday. The BSE Sensex fell over 1100 points and Nifty50 below 17900-level at the market close today.
On the back of monthly series expiry and select FIIs (foreign institutional investors) downgrading the Indian have led the market sell-off on Thursday. The BSE Sensex fell over 1100 points and Nifty50 below 17900-level at the market close today.
The decline was mainly led by banking stocks as Nifty Bank slipped over 1300 points below 39550-level along with the metal index down. While pharma, IT, auto, and financial also contributed to falling.
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Even broader markets weren’t spared by the selling spree as Nifty Midcap and Small cap each slipped by around 2 per cent at the market close, the fall was led by realty and metal stocks.
The analysts see this extended correction mode of the market and Nifty to have ended just above the support level of 17800 zones.
What to expect from the markets on Monday? Here is an explainer!
Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research pointed out, “We witnessed the continuation in the correction in the market after the market failed to hold the Nifty 50 Index level of 18200 and then 18000 consecutively.”
He added, “Our research shows that it is going to be crucial for the short-term market scenario to sustain above the 17800 support zone. If the market is unable to sustain the level of 17800, we can witness lower levels of 17600. The technical indicator suggests, a volatile movement in the market.”
Meanwhile, Santosh Meena, Head of Research, Swastika Investmart Ltd mentioned, “We are seeing the first meaningful correction in the market where Nifty has slipped below its 20-DMA that has opened the door for further downside where rising 50-DMA will be the next support level that may coincide with gap area around 17650 while below this, 17450-17250 will be the next support zone.”
“Relentless selling by FIIs is a key reason for this correction in the market. Today, Morgan Stanley downgrades India to equal weight due to outperformance by Indian markets in recent months. Inflation and slowdown in global growth momentum are other concerns amid expensive valuations. The rise in fresh covid cases in some of the countries is also disturbing the mood of the investors.”
Similarly, Vinod Nair, Head of Research at Geojit Financial Services, said, "Bears continued to dominate domestic indices tracking cues from weak Asian and European markets ahead of a policy update from the European Central Bank. Globally, investors are on the edge awaiting the US GDP data releasing later in the day along with the outcome of the Fed meeting scheduled for next week.”
06:18 PM IST