Experts are considering the increasing tension between Russia and Ukraine as the biggest reason for the decline in the market. He says that if Nifty breaks the level of 16800, then there can be a huge fall in the market.
Stock Market Falling: There is heavy selling in the stock market. After the big fall on Friday, even today the weakness in the market is not taking its name to stop. Between this correction of 2 days in the market, about 10 lakh crore rupees of investors have been sunk. At present, many global factors are responsible behind this sell-off in the market. But experts are considering the increasing tension between Russia and Ukraine as the biggest reason. Experts say that if Nifty breaks the strong support level of 16800, then there can be a huge fall in the market. For now, investors should wait for the market to stabilize.
Major reason for the decline in the market
Tradingo’s founder Parth Nyati says that due to increasing geopolitical tension, the market is selling for 2 days. Tensions are rising between Russia and Ukraine, even as there are fears of war. Due to this, the prices of crude are continuously increasing. This is negative for the global market as well as the Indian equity market. For this reason, there is a sell-off in the markets around the world. Inflation is at its peak in the US, due to which the markets are now engaged in discounting, but due to geopolitical tension, the pressure has increased. At the same time, the fraud issue of ABG group in the banking sector has increased the pressure on the banking stock. Although it is a part of NPA itself.
Crude at 7 year high
Crude is trading at 7 year high due to geopolitical tension. Brent crude futures have crossed $95 per barrel. It is expected to reach $100 in the future. In such a situation, the inflation figures can be worse. Today the Sensex has weakened to the level of 56,612.07 by breaking more than 1500 points in intraday. Whereas Nifty has weakened by more than 400 points to the level of 16917.
Nifty eyes at 16800 level
He says that now the eyes of the market are on the important level of 16800. If Nifty breaks this level then the condition will worsen. There is a possibility of heavy selling if this level comes down. At present, a level low of 16917 has been shown for Nifty today. He says that right now Nifty is trading in the critical demand zone 17000-16800 level. As long as Nifty remains above its 200-DMA 16800, it will be advisable to buy on the downside. But the situation will change when it comes below 16800. On the other hand, there are multiple resistance zones for Nifty at the level of 17650, while the level of 17300/17500 is an immediate hurdle.
10 lakh crore drowned in 2 days
There is heavy selling in the stock market since 2 days. On February 10, the market cap of companies listed on the BSE closed at Rs 2,67,81,364.27 crore. But on February 11, it came down to Rs 2,63,89,886.35 crore. Whereas today i.e. on February 14, till 12:50 pm, it has come down to Rs 2,58,22,577.61 crore. It was further reduced in intraday. That is, in the trading of 2 days, about 10 lakh crore rupees of investors were sunk.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
,