Stock market today: Indian stock markets are witnessing a decline for the fifth consecutive day today. In these 5 days, the Bombay Stock Exchange (BSE) benchmark index Sensex has broken about 3,300 points. On the other hand, the Nifty index of the National Stock Exchange fell by about 1,100 points. Nifty small cap and mid cap indices have seen an even bigger decline and their returns this year (YTD) have gone negative.
According to stock market experts, this weakness has been seen mainly due to foreign portfolio investors (FPIs) withdrawing money from the markets. Experts say that the market may continue to remain weak as breakdown is visible in most of the indices like real estate, Nifty smallcap, midcap etc.
However, he sees a possibility of a bounce back in IT stocks. He believes that by buying back the shares of TCS, new buying can start in this sector.
Ravi Singhal, Vice-Chairman, GCL Securities, in an interaction with Livemint said, “This decline is being witnessed by FPIs and FIIs withdrawing money from the Indian markets. Earlier, during Christmas to New Year also, these foreign investors Went on a week long holiday. At that time he was a net seller in the market and due to this, Nifty then came to the level of 16,400. When he came back from the holiday, Nifty again went above 18,000. Now he has taken a break. Once again, money has been withdrawn from the Indian markets. If we look at the figures, FII has sold equity shares worth about Rs 11,000 crore in the last three trading sessions.
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Keep an eye on TCS for bullishness
Singhal says a significant number of quality stocks have shown breakdown. In such a situation, the ongoing fall in the stock market may continue for a day or two. The mood of the market will depend a lot on the Union Budget 2022 as well.
He further added that if one wants to take advantage of this continuous sell-off, then one should look at the shares of TCS. “TCS is a large-cap IT stock and is about to announce a share buyback, which may trigger a sell-off in new-age IT stocks,” Singhtal said.
“Those who don’t want to take any risk can buy TCS shares at Rs 3,700 to Rs 3800 per share and hold it in the short-term with a target price of Rs 4,300. However, they can get Rs 3,550 with it,” he said. A stop loss of Rs. Singhal said the rise in TCS shares will also lead to fresh buying in other large-cap IT stocks like HDC Tech, Wipro and Infosys.
What is the signal getting from the chart?
Sumeet Bagdia, executive director of Choice Broking, expects a sharp comeback in the stock market soon. He said, “Nifty has strong support at 17,000 to 17,100 levels. Once it gives a breakout at 17,500 depending on the close, we can see it move sharply towards 17,800 to 18,000 levels. Similarly, Bank Nifty has strong support around 36,500 to 36,700 levels. It will also be bullish once it gives a breakout at 37,500 level on a close basis. After the breakout, we will soon see the 38,500 to 39,000 level of Bank Nifty index. can be expected to reach the level of
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