Trade Setup: Heavy selling was seen in the Indian stock market today on January 6, the first trading day of the week. The 30-share Sensex fell 1258 points to close at 77,964.99. At the same time, Nifty 50 also fell by 388.70 points to the level of 23,616.05. In this way, investors lost about Rs 11 lakh crore in a single day. Nifty slipped below 23600 during today’s session. During this period, the index broke the major supports at 20-DMA and 50-DMA. Today’s fall is the biggest one-day fall in percentage terms since October 3, 2024. Most banks remained in the red after the quarterly update, with Union Bank seeing a decline of nearly 8 per cent.
On Monday, foreign institutional investors (FIIs) were net sellers of ₹2575.06 crore, while domestic institutional investors (DIIs) made net purchases of ₹5749.65 crore. The strengthening of the dollar and continuous selling by FPIs have further increased the decline in the market. Shares of ITC Ltd fell by 8% today as the company demerged its hotel business, which will be listed on the stock exchanges in the coming session.
What do experts say on the new virus?
Siddharth Khemka of Motilal Oswal expects the market to remain volatile until concerns related to the new virus subside. “We may see stock/sector specific action after pre-quarterly business updates and start of Q3 results season,” he said. CA Jashan Arora, Director, Master Trust Group believes that market volatility will remain high in the near future due to company earnings, upcoming budget and international trade policy.
What do Nifty 50 charts indicate?
According to Nagaraj Shetty of HDFC Securities, the short term trend of Nifty is weak and some further weakness can be expected in the coming sessions. The next lower support is seen at the levels around 23460 and 23260. In case of a bounce, the hurdle is around 23800.
Om Mehra of Samco Securities said that Nifty has slipped below all the major moving averages. He said, “If going forward the previous support at 23460 is broken, the index may see a sharp correction towards 23300-23200 zone. Unless Nifty closes decisively above 24000, short term pullback is risky.” It is possible.”
Vinay Rajani of HDFC Securities said with a fall of over 675 points from the recent swing high of 24226, Nifty has negated the bullish trends on short term charts. The trend has turned to the downside, where immediate support for Nifty is seen at 23460 and 23263. Resistance for Nifty is at 23800 and 24090.
What do Nifty Bank charts indicate?
Nifty Bank ended the session at 49922, registering a huge fall of 2.09 per cent. This has formed a prominent bearish candle on the daily chart. The index has been consistently exhibiting lower highs and lower lows, indicating bearish sentiment in the near term.
Mehra said that a turning point has come for Nifty Bank, because the support of 49530, which was bearing selling pressure for the last six months, now seems to be weakening. If this level is broken decisively, there could be a sharp fall in Nifty Bank.
The analyst said, “The index has moved below all the major moving averages. The daily RSI remains below 40 points, which shows downside momentum and lack of any immediate reversal signs. With short-term pullback trades There is more risk involved as there is a lack of confidence in the current trend. If it closes decisively above 51,000, it could restore confidence and. “Could indicate a sustainable recovery.”
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