Anil Singhvi sounds alert for investors amid stock market mayhem, reveals Nifty, Bank Nifty support levels
Thursday has been a very tough day for stock market. It is the first time since 3rd August that the Nifty has closed below 10900. Meanwhile, Bank Nifty was weaker by more than 500 points, ending the day below 20500. All sectors were down today including IT metals and auto. Meanwhile the Angel Broking IPO has also received a lacklustre response
Thursday has been a very tough day for stock market. It is the first time since 3rd August that the Nifty has closed below 10900. Meanwhile, Bank Nifty was weaker by more than 500 points, ending the day below 20500. All sectors were down today including IT metals and auto. Meanwhile the Angel Broking IPO has also received a lacklustre response.
While the global markets were slightly weak, the Indian markets saw fervent selling today - the September Month expiry day. The Foreign Institutional Investors (FIIs) have been on a selling spree and if the FIIs are keener on selling in Indian markets in comparison to global markets, then these are not good signs, the Market Guru further said.
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The moot question is how much of the selling was due to global cues and what part of it was due to Monthly expiry today.
Zee Business Managing Editor Anil Singhvi provides the answer.
The fall can be attributed to the expiry factor to some extent and not because of short selling, Singhvi said. Most of the traders and investors had stepped into the markets from positions of strength in the week of monthly expiry. There were slight indications from Monday itself that the markets would remain week this week.
However, the market did not give enough opportunities to the traders and started a downward trend. The markets fell from 11500 to 11250 without warning. It is unlikely that the investors had any clue to get out in a timely manner.
The Nifty has been seeing a breach in all the strong support levels. The problem here is that the markets are not making an attempt to regain the momentum, Singhvi said.
The last support zone for Nifty is around 11800. While for Bank Nifty the last support zone is around Rs 20450.
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These are levels where it is expected that the support will come but there are still no clear indications as to where the markets would next take a turn, the Market Guru said.
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