The Indian market is seeing a decline in Thursday’s trade. The four-day rally of the market has been curbed. And bears have dominated the market. The increasing havoc of Corona’s new variant Omicron and the announcement of harsh monetary policies of the US Fed has spoiled the market sentiment. Indian markets opened with a fall today amid weak global cues. And as the trading session progressed, the decline also increased.
At present, the Sensex is looking down about 775 points. Nifty has slipped below 17,700. All sectoral indices are showing red mark. Banks, IT, FMCG and Reality indices are down more than one per cent. Like the big stocks, small and medium stocks are also under pressure. Mid and small cap indices are also down 1%. Let’s take a look at the reason for this decline
Weak global signal
The US Fed has indicated that interest rates may be hiked prematurely. Due to this news, Dow Jones fell 392.54 points or 1.07 percent to close at 36,407.11 in yesterday’s trading. Similarly, the S&P saw a decline of about 92 points and the Nasdaq Comosite also closed by breaking 523. The impact of this news was also seen on the Asian market. The Tokyo Nikkei slipped 1.56 per cent.
Corona raised concern
In the last 24 hours, 90,928 new cases of corona have been found. According to the information given by the Health Ministry today, the daily positivity rate of the country has reached 4.18. With the increasing cases of corona, all the states are imposing restrictions. The market is worried about this. The effect of which was seen today.
Manish Hathiramani of Deendayal Investments It says that the Nifty has shown a decline from around the resistance zone of 17,800-17,950. This is not a sign that the current bullish phase of the market is over. As long as Nifty manages to hold on to 17,200, it will remain bullish. At this time in the downtrend in the market, the strategy of buying in good stocks will be better. But it is also true that unless Nifty closes above 17,950, then we will not see the next round of bullishness in it.
Mohit Nigam of Hem Securities Says that the American markets closed with weakness in yesterday’s trading. While the European markets closed in the green. The pressure is also being seen in the Asian market. Due to the US Fed’s attitude on interest rates, there was a huge fall in the US market. Talking about India, in order to protect the economy from any possible shock, the RBI may postpone the plan to hike policy rates for the new financial year starting April. From a technical perspective, the immediate support for Nifty is at 17,600 and the immediate resistance is at 18,200. On the other hand, support is seen for Bank Nifty at 37,300. Whereas the resistance zone is visible for him at 38,200.
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