Stock Market Outlook: Selling pressure is being seen on the stock market in the last month of FY 2021. Since March 10, the market fluctuations are very high. The Sensex is trading at a loss of about 3000 points from its record high. On 16 February 2021, the Sensex touched an all-time high of 52516. Experts are assuming that the increasing cases of bond yield and coronavirus are mainly responsible for the pressure on the market. Further, the 14,450 level is very important for the Nifty. If it breaks downwards, correction can be faster. At the same time, if the market is able to stay above this, then it can get stability in it.
The reason for selling pressure in the market
Nirali Shah, Head of Equity Research, SAMCO Securities, said that there was an upward trend in the domestic market and the US market last week. While the US market was in the making all the time, the Indian markets were in decline. While the US Fed’s sentiment of not changing interest rates and continuing to buy bonds, investors’ sentiment improved, but the behavior of the bond market was exactly the opposite. Commodity prices have been steadily rising with bond yields.
He says that in addition to this, the second wave of coronavirus is increasing rapidly in the country, which has increased the market tension. An increase in retail inflation is also a factor that worsens the sentiment. Due to these reasons, there is constant pressure on the market. Foreign investors have also been net sellers in March and they have continuously withdrawn money from the market. The liquidity that has increased in the domestic market is mainly due to the IPO in the primary market. There have been 6 IPOs in the last 7 to 8 days.
What should investors do
Nirali Shah says that there can be pressure on the market right now. In such a situation, investors are advised to do business with caution. The market is better for those investors, who want to invest in the market for a long period. The market has come down from its top-level, in such a situation, with an investment target of 5-10 years, one should invest in stocks with good and strong fundamentals. At the same time, if you want to invest for the midterm or short term, then wait for the market to become stable.
14450 level critical
Experts say that in the past days, the Nifty has seen a range of 14,450 to 15,350. The 14,450 level at the bottom is very important. If this breaks, the Nifty may weaken to the level of 14000. But if the market managed to stay above this, then stability will be seen further. For now, traders should trade by applying stop loss right now.
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