Indian stock markets fell sharply today on earnings reserve from recent highs as investors became cautious. The S&P BSE Sensex closed down 580 points, while the NSE Nifty 50 index fell 1.3%. Global stocks mostly fell today amid anxiety over the economic fallout from rising coronavirus infections in the United States and Europe.
Bank stocks, which outperformed this month, fell sharply today, dragged down by heavyweight banking and financial stocks, including HDFC Bank, ICICI Bank, HDFC and Axis Bank, which lost 2-4%.
The Nifty Bank index, which had risen nearly 25% this month through Wednesday, closed 2.85% lower. It had increased in 11 of the last 12 sessions.
A rally in auto stocks, which had gained for 11 straight sessions amid signs of improving vehicle sales during the Indian holiday season, also came to a halt and the Nifty Auto Index fell 0.67%.
SpiceJet, a Boeing customer, was up 12.2% after the United States lifted a 20-month flight ban on the 737 MAX.
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Here’s what analysts had to say about the current market performance:
Deepak Jasani, Director of Retail Research, HDFC Securities
“The volumes on the NSE were the highest in six days. Nifty has formed a triple top in the short term for the last three days in the band 12934-12963. For the bullish movement to continue, it would be necessary to break this band. downside moves 12607-12770 could offer support. There is slight damage to bullish sentiment in the markets. In case we don’t get another negative trigger soon, we could rebound from this setback. “
Vinod Nair, Head of Research at Geojit Financial Services
“The rise in virus infections raised fears of additional restrictions and, considering their impact on global economic activity, global market sentiments turned negative. This was despite optimism around the advanced stages of development of the vaccine. We can expect short-term volatility in the markets and investors are advised to be cautious. “
Manish Hathiramani, Technical Analyst and Property Index Trader, Deen Dayal Investments
“After a gap-down, the Nifty turned positive but could not sustain it for long. It went back into negative territory but has not broken the 12500 support, which means that the trend continues to be bullish. 13100 is still an open target. that the index can reach at the end of the November series “.
Ruchit Jain from Angel Broking
“13000 now becomes the solid wall that Nifty must overcome. From an intraday or short-term trading perspective, these corrections provide opportunities on both sides of the trade and therefore traders should look for those trading opportunities. and have a proper exit strategy as well. However, we are still witnessing some good price volume action in the broader markets and therefore any dip should provide a good entry point for positional traders. accumulate stocks in the falls. “
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