Today’s day in the Indian stock market and this whole week has been closed with a negative note. On February 4, ie, in today’s trading, the BSE Sensex closed at 58,644.82 with a fall of 143.20 points or 0.24 per cent. Nifty closed at 17,516.30, down 43.90 points or 0.25 per cent.
The market had started with a slight gain today but after a while the trend was seen turning negative and the Sensex Nifty slipped into the red mark. The market witnessed heavy volatility throughout the day and the indexes were seen trying to defend their important support levels.
Vinod Nair of Geojit Financial Services Says that the effect of the pressure of the last trading day remained intact in the market today. Barring FMCG and metal, most sectors remained under selling pressure. He further said that weakness prevailed in the European markets as well. The Bank of England has hiked rates again at yesterday’s policy meet, while the ECB has once again warned of the danger of rising inflation, which is likely to raise rates further in the future. Apart from this, the US market also remained under pressure due to heavy selling in Facebook’s parent Meta.
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How will the market move next week?
Amol Athawale of Kotak Securities Says that the market ended the week with a negative tone after trading with pressure for most part of today’s trading. Investors were seen booking profits today after the recent rally. Most of the Asian markets remained in the green but European markets struggled in early trade, which affected the sentiments in the Indian markets as well.
From a technical point of view, Nifty was seen trading above the 50 day SMA but profit-booking was seen near the 20 day DMA located at 17800. Staying above 50-day SMA is a big positive sign for Nifty. Nifty has formed an upper shadow bullish candle on the weekly chart. He is a sign of uncertainty between the Bulls and the Bears. Nifty continues to form higher bottom formation on Daily and Intraday charts indicating continuation of uptrend. The 17400-17350 level is a very important support level for the traders. On going above this, Nifty can go towards 17,700-17850. On the other hand, if Nifty slips below 17350, then in the short term we can see a fall in it till 17200-17150.
Ajit Mishra of Religare Broking Ltd Says that today the market was sluggish and today the market closed in the red mark. The global market, especially the American market, has become quite volatile in the earnings session. Which is also affecting the sentiments of our markets, it is expected that the same trend will be seen in the near future. Talking about the domestic market, on February 7, the market will first give its reaction on the results of SBI. After that the eyes of the market will remain on the RBI Monetary Policy Review. We may see more consolidation in the Sensex Nifty going forward. Apart from this, we are also likely to see huge volatility in the market. In such a situation, avoid taking risk in the market and do not take highly leveraged positions.
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