why market is down today in india,the bears are strong in this market as the Nifty and Sensex have broken Budget day levels and ended below their 20-day SMAs. At 78,759.40, Sensex fell by 2,222.55 points or 2.74%. While Nifty plunged to 24,055.60 with a decrease of 662.10 points or 2.68%.
Both BSE Sensex and NSE Nifty50 easily took down their budget day level of July 23 on Monday as they went below their respective levels of simple moving averages for the past twenty days. As seen on daily chart this resulted in elongated bearish candles. The momentum of the market has been weakened by analysts according to them.Sensex:78,709.50 and Nifty:23,960.30 were close to their fifty days moving averages.In case there is any further decline in indices Sensex at 78,300 & Nifty at 23,900 would possibly look good , they said.
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why market is down today in india,losses more than -2% each
On Monday it saw an all-time closing low against the dollar of INR83.8450—down only slightly from the previous day’s rate (0.1%). The U.S government’s disappointing employment numbers made investors sell off aggressively on Wall Street due to concerns that it could slow economic development within the country.The major Indian market indices namely BSE sensex and nifty50 had witnessed its biggest one-day loss since more than two months ago with over losses more than -2% each.
In technical terms, this means that both Sensex and Nifty fell beneath their respective Moving Averages over a period of twenty days which is mainly negative according to Kotak Securities’ Head Equity Research Shrikant Chouhan who also added that these indices had long bearish candles on daily charts indicating additional downside from here. Sensex closed at Rs78,759.40 on Monday after shedding 2,222.55 points at the rate of 2.74%. This was below BSE’s 30-share index’s July-23 settlement of 80429.04.Nifty for August expiry settled at Rs24,055.60 and a decrease of 662.10 or 2.68% below the Nifty July-23 low of 24074.20.
why market is down today in india,the current market as weaker and choppy
While we view the current market as weaker and choppy, there could be an intraday rally in response to a short-term oversold condition that may arise. The immediate benchmarks for day traders would be at levels of 78,500 and 24,000 on Sensex and Nifty respectively. Above this one might expect an internal decline about up to levels of around Chouhan.Chouhan also said that if both Sensex and Nifty were to decline below their respective support levels of 78,500 &24,000 then it could possibly put pressure on the index.He further added that nifty might test level given that it’s difficult to fill bearish gap in between (24,350 – 24,700) as such Rajesh Bhosale who is Angel One’s Equity Technical Analyst.
However he sees more downside pressure building if we see Nifty breaking down under its key psychological level of twenty four thousand plus Sensex too going below seventy eight thousand five hundred; thereafter both indexes may again retest twenty three thousand nine hundred and seventy five level for nifty along with seventy eight thousand three hundred.
“However, the first level of support is 23,900 and 23,600 which corresponds to a 38.2% retracement level from the election day low”. “But the bigger support would exist between 23,400-23,300 which corresponds to the 89-EMA and a 50% retracement of higher lows mentioned above.” This levels should be watched by traders who should also modify their trades as required.
“The Nifty broke below Budget day levels indicating that it has defied an uptrend”, says Jatin Gedia, Technical Research Analyst at Sharekhan.
“Closing below the clear weakness in 20-day moving average (24,575). The Nifty is currently retreating from its peak of 25078 back to its low at around from. A key Fibonacci correction point can be found at 23628 while the twenty week’s moving average stands at 23280. The immediate resistance on upside comes in around 24300–24350,” he added.
Nifty on Wednesday climbed marginally higher after first finding initial support on the back of the fifty EMA said Rupak De Senior Technical Analyst with LKP Securities. According to him RSI has made bearish cross over and currently it is declining; hence near term sentiment will remain weak and there are possibilities that index may break down below.
why market is down today in india,What then do investors have to do or stay away from?
Do not run into panic selling. For retail investors intraday trading or speculative positions in futures and options market is unacceptable according to experts’ opinion. There is a view among some experts that during such uncertain times globally, retail investors who take speculative positions in markets could get burnt.
It is important to note that large cap companies have better ability to handle problems during corrections. As such small and mid-sized companies are best left alone by investors. Forgetting that BSE Midcap Index tumbled about 3.9% and BSE Smallcap index plunged 4.4% in the afternoon slump of about 3% on Sensex would be an oversight.
Experts suggested starting to stagger your fund parking in large cap plans right now. However, investors need to be careful.
According to a CIO from a prominent fund house, “In today’s environment where there is some uncertainty across the globe, investors should park funds only in large cap funds or companies and avoid mid cap and small cap funds and equities as there are pockets of concern.”
Moreover, though historically equity investments have delivered huge rallies and returns for investors but many feel that going forward they will have to moderate their expectations.
Naha suggested that over the next nine to twelve months lowering return expectations and re-allocating towards stocks can help gain something over the next three to five years.
