Stock Market

Stock Market: Nifty50 goes under Key Support, Trend Bearish

Stock Market: After an early gain, equity indexes were met with severe selling pressure on Thursday, with the Sensex plunging 1,045.60 points in the midst of a generally negative trend worldwide.

This was in response to the Federal Reserve of the United States raising interest rates by 75 basis points.
The BSE benchmark was unable to maintain the gains it made during the morning trading and ended the day with a loss of 1,045.60 points (or 1.99 percent), bringing it to a closing price of 51,495.79, marking its fifth consecutive day of losses.

Stock Market: Experts Says

The stock market crashed on the weekly expiration day, losing more than 2 percent of their value as they followed weak global indications. The benchmark began with a gain initially as a response to the rate rise that was implemented by the US Federal Reserve, which was in accordance with the anticipation. However, it was unable to maintain for an extended period of time and progressively decreased in height as the day continued.

The breach below the bottom of March, which was 15,670 on the Nifty on the weekly expiration day, put even more pressure to the situation. As a direct consequence of this, the value of the Nifty index finished the day at 15,360, which was close to its low point. All of the industry indexes moved in lockstep during the trading day and finished in the red, with the metal and media companies taking the worst hits. The more comprehensive indexes also finished with strong declines and lost somewhere in the region of 2.5 to 3.5 percent.

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Bear and bull market symbols with a wire frame chart and ticker investment graph on a black backdrop.

The stock market are pessimistic about the prospects for growth in the world’s economy in light of the rapid tightening. Following the unmistakable fall below 15,650 on the Nifty, the next significant support zone may be seen in the region between 14,800 and 15,000. In the absence of any clear indication that the trend would change, we believe it is advisable to maintain a modest exposure and adjust our holdings accordingly.

People who believe in tops and bottoms in stock market are usually liars and idiots. There is no effort made on our part to forecast the precise amounts. These times provide an opportunity for investors who are not fully invested or who have raised cash in the recent past by booking profits to gradually raise the equity portion of their portfolio.

For investors who are not fully invested or who have raised cash in the recent past by booking profits, these times provide an opportunity. When making a shortlist of companies that are suitable for investment, one must be cautious not to have exposure to any sectors or businesses that have been downgraded as a result of very high valuations or extremely high profit projections that seem to be impossible to realise.

Additionally, equities need to be scrutinised in great detail to see whether or not profits can be maintained. Averaging down on the decline is one of the best ways to find a point of entry that is both profitable and low risk. Since no one can time the bottom of the market, this strategy is required to get the process started.

Nifty’s gains were erased as the benchmark plummeted sharply and, more crucially, finished at its lowest point of the day. This occurred after the morning session provided a little reprieve for investors, which resulted in the stock market bouncing back. In point of fact, the prospect of soaring core inflation is still a source of concern for the large Nifty bulls. Due to the fact that the Fed has increased the pace at which it is hiking rates, market participants believe that the RBI may eventually catch up with the hawkish stance of the Fed.

Following the significant decline that took place today, we believe that bulls will have an uphill struggle against the background of hawkish policies from the Fed and the RBI, soaring oil prices, inflation worries, growth anxieties, and consistent selling by FIIs. In a nutshell, the 15000 level is where the Nifty is expected to find its first bit of immediate support. If the Nifty falls below 15000, traders could anticipate a rapid decline into the 14251 barrier.

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