Factors including poor quarterly results, continued sell-off by foreign investors, and global uncertainties have weighed on Indian stock markets. Along with decline in Sensex, Nifty, panic selling by operators in A group, small, mid cap stocks, funds followed by retail investors, high net worth investors, the wealth of investors i.e. aggregate market capitalization of companies listed in BSE decreased. Thus, in two days, the wealth of investors has been eroded to the tune of Rs.13.70 lakh crore. The Sensex has closed at the level of 80081 points with a decrease of 138 points, while the Nifty future index has closed at the level of 24482 points with a decrease of 55 points. While the Bank Nifty future index has decreased by 82 points. with closed at the level of 51352 points.
The panic in the market increased as the sentiment in the global markets remained depressed. On the one hand, the continuous selling of stocks by Foreign Portfolio Investors (FPIs) has reached over Rs.83000 crore so far in the month of October, after the selling of foreign funds, there is now a sign that the High Net Worth Investors (HNI) of Mutual Funds are also withdrawing their investment in a big way and its As a result, Mr. Panic selling increased in the stocks today as redemption pressure started in the funds. Many stocks were gapped due to increased selling in the last hour.
Top gainers in today's trade include TCS, ACC, Infosys, Tech Mahindra, Bata India, Voltas, Mahanagar Gas, Muthoot Finance, HCL Technology, HDFC Bank, Bharat Forge, Jindal Steel. Today's top losers include Reliance, Larsen, Torrent. Shares like Pharma, Grasim, Lupine, Sun Pharma, Bharti Airtel, Axis Bank, JSW Steel, Tata Motors, Adani Ports, Havells, DLF Limited have declined. Out of a total of 4031 scrips traded in BSE, the number of decliners was 1751 and the number of gainers was 2177, 103 stocks saw no change in price. While 01 stocks had only seller's bearish lower circuit, 06 stocks had bullish only buyer's upper circuit.
Nifty Future Technical Levels… NIFTY FUTURE CLOSES :- ( 24482 ) :- The next swing is likely to see Nifty Future touch the crucial level of 24533 points to 24575 points, 24606 points in terms of trading first of 24330 points and crucial strong stoploss of 24202 points.Cautionary positioning around 24202 points .
Bank Nifty Future Technical Levels
Bank Nifty Future Close :- ( 51352 ) :- The next move is possible Bank Nifty Future may touch the first important level of 51008 points and 50880 points from 51474 points to 51606 points, 51676 points very important level around 50880 points cautiously. Creating a position…!!
Specific technical level regarding future stock Mahindra & Mahindra (2801) :- The share price of this leading company of Mahindra Group is currently trading around Rs.2770. Buyable with a stoploss of Rs.2744, this stock is likely to register a price of Rs.2833 to Rs.2847 in a short period of time…!! Bullish focus on Rs.2860…!! Reliance Industries ( 2689 ):- Positive breakout around Rs.2644 as per technical chart…!! This buyable stock with support of Rs.2626 is likely to register price of Rs.2707 to Rs.2730…!! HCL Technology ( 1845 ) :- According to the technical chart this stock from Computers – Software & Consulting sector is likely to trade profitably around Rs.1874 with a target price of Rs.1828 to Rs.1808. Consider a trading stoploss of Rs.1890..!! Tata Communication ( 1783 ):- This stock is sellable with a stoploss of Rs.1818 registering an overbought position around Rs.1808..!! It is likely to show the price of Rs.1770 to Rs.1757 in phases…!! Above Rs.1830 will look bullish.
Future direction of the market… Friends, India's economic growth rate is expected to be around 7 to 7.20% in the current financial year keeping in mind the massive expenditure and large investments in the manufacturing sector by the government. However, looking at the weak global growth, the outlook will be seen in the next financial year. The growing manufacturing sector, stability in oil prices and the possibility of a more liberal monetary policy in the US after the election will not only increase the capital flow in the country and reduce the cost of production, but also in long-term investment. There will be an increase and growth in employment will be seen. In the June quarter of the current financial year, the economic growth rate of the country has been seen at 6.70%. India is also among the fastest growing countries globally. Deloitte has maintained its GDP growth estimates of 7 to 7.20% for the current fiscal year and 6.50% to 6.80% for the next fiscal year. Meanwhile, S&P Global Market Intelligence has estimated India's economic growth rate at 6.80% for the current financial year and 6.60% for the next financial year.
Sensex and Nifty hit their all-time highs on September 27. Since then the market has broken more than 6% against today's close amid high volatility. Investors have also suffered a loss of over 32 lakh crores. Sensex has lost 4% and Nifty 5% in October. Due to high volatility in the domestic stock market, the bearishness has intensified. Small-cap and mid-cap stocks have seen heavy selling. Auto and realty stocks also fell. Markets were subdued amid a rise in US bond yields, the possibility of a rate cut by the Fed. Various factors including weaker than expected quarterly corporate results and RBI's indication of a slowdown in the second quarter could also weigh on the market. So investors are advised to hold back and wait till the market stabilizes.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
