This is what caused Nifty to plunge to 6-month low; fall can extend to next support at 11,200
The possibility of a worsening US-China trade war is continuing to roil the markets worldwide.
The Indian markets were badly hit today with the Nifty50 plunging by 151 points or 1.30 per cent to under 11,500-level. This was the biggest single-day fall since February 6, 2018 for the index. Nifty50 closed at 11,438.10 points. This was in reaction to weak global markets causing investors to turn cautious. The possibility of a worsening US-China trade war is continuing to roil the markets worldwide.
Breadth of the market remained weak with decliners outnumbering advancers in ratio of 3 to 5. In his reaction, VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities said, "Nifty has resumed the short term downtrend and can extend the fall toward next support at 11,200. It would be advisable to remain cautious on markets this week. Resistance for Nifty is seen at 11620."
On what caused the market mayhem today, Sharma revealed, "Depreciating rupee against the Dollar has been a main culprit behind the fall of Indian markets today. Weak Asian markets also marred the sentiments. Rupee touched the all-time low of 72.67 during today’s session, caused many short term speculators to liquidate their position in the equity market."
Speaking specifically about a segment under focus, Sharma said, "NBFC stocks are looking weak as fast depreciating currency may force regulators to hike interest rates in near term. This will put pressure on margins of these companies in the short term. These stocks can extend the losses in the coming sessions."