Sensex today closed at 57,491.51 with a slippage of 1545.67 points and Nifty declined by 468.05 points at 17,149.10. Both the domestic benchmark indices closed with a fall of more than two and a half percent.
Amid the decline in global markets, there was selling pressure in the domestic market for the fifth consecutive trading day today. Sensex and Nifty declined amid concerns of inflation and tightening of monetary policy. The BSE Sensex fell at a low of 56,984 on Monday, down 2,000 points or 3.5 per cent in intraday. At the same time, Nifty fell by 50, 500 points or 3.5 percent to the level of 16,998. The Sensex closed at 57,491.51 today with a slippage of 1545.67 points and the Nifty declined by 468.05 points at 17,149.10. Both the domestic benchmark indices closed with a fall of more than two and a half percent. Analysts believe that long term investors can enter the market at these levels.
FPI selling, inflation and rising crude oil prices are affecting the market
Ravi Singh, VP and Research Head, Share India Securities, told Financial Express Online that Foreign Institutional Investors (FIIs) withdraw money from the Indian markets for a variety of reasons. Crude oil prices have been rising for the past few months in the form of global inflation, which has negatively impacted the financial markets. BSE Sensex and Nifty have been affected by the upcoming assembly elections in five states, budget, and concerns of tightness in monetary policy.
Nifty Technical: Although selling pressure may persist till Thursday this week and if Nifty closes below 17200 then it can go further down to 16800 level.
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Rate hike concerns and US Fed speech
Milan Vaishnav, Consulting Technical Analyst and Founder, Gemstone Equity Research and Advisory Services, said that the Indian market is going down due to inflation or rate hike concerns and the US Fed speech this week will also be important.
Nifty Technical: Selling continues for the fifth consecutive day. Nifty has broken over 1200 points from its technical pullback of 1800+ points. He further added, “However, on the short term charts, the selloff seems high and we can see some technical pullback even if there is no major change in the directional consensus.” Vaishnav said that Nifty is getting strong support at 17200 as a trend line. This trendline starts from the top of 18600 and joins the lower tops later. “In any case, it will be important to maintain the levels of 17200 for Nifty and 56000-56500 for Sensex,” Vaishnav told Financial Express Online.
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What do experts say
- Gaurav Garg, Head of Research, CapitalVia Global Research said that the bears have a strong hold in the Indian markets. Garg said inflation concerns seem to be the main reason for investors’ dismay. With the economy returning to normal, inflation is also expected to return to normal.
- Nifty, Bank Nifty Technicals: He told Financial Express Online, “After the recent correction, 16,900-17,050 seems to be the immediate support zone for Nifty after 16,700. Whereas upwards the 18,400 resistance zone appears. After 34,000, 35,500 is the immediate support zone for Bank Nifty. In the near term, it may face resistance around 38,200.
- Kranti Bathini, Director Equity Strategy, Wealthmills Securities, said Indian markets were under selling pressure due to weak global cues. Domestic investors are in wait and watch mode before the upcoming Union Budget 2022.
- FPIs monitor the decisions of the US Federal Reserve and geopolitical issues between Russia and Ukraine. Bathini advised investors, “This is a good opportunity for long term investors to enter the Indian market.”
(Article: Surbhi Jain)
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