Dear Trader…
On the first
day of the week, the Indian stock market bullish run stopped at a red mark due
to unprofitable selling from higher levels. The crash in benchmark indices
today can be attributed to the waning interest of foreign institutional
investors in the Indian market. Fund inflows from FIIs have slowed in the last two
sessions.
The expected
profit booking in the Indian stock market has seen a sharp decline as another
spike in bond yields weighed on the overall global market sentiment and finally
breaking the consolidation range on the lower side and in BSE Sensex plunged
with 397 points while the Nifty50 was down 101 points. Decliner was 1313 and
the number of gainers was 691.
FII-foreign institutional investors, foreign portfolio investors-FPIs,
on Monday saw a net sale of Rs 1,101.35 crore in the cash segment. A total of
Rs 7760.17 crore was sold against a total purchase of Rs 6658.82 crore.
DII-domestic institutional investors today saw a net sale of Rs 749.71 crore in
the cash segment. A total of Rs 4785.90 crore was sold against a total purchase
of Rs 4036.19 crore.
Profit-taking continued this week amid rising covid cases in
Maharashtra. Fresh concerns of virus spread contributed to the fears that the
economic impact will be much larger than earlier estimates. Further, reports
suggested that lockdown may be re-imposed in the financial capital of the
country, Mumbai also kept investors at the edge.
Amid rising Covid -19 cases in Maharashtra, one of the worst
affected states from the pandemic, Chief Minister Uddhav Thackeray has said
religious, social and political gatherings will be prohibited in the state from
Monday. Asking people to follow “Covid-appropriate” behavior and
safety norms, he said he would observe for a week to 15 days and then decide
whether to impose another lockdown.
Will keep an eye on the possibility of a major blow to the Indian stock market due to the increasing transition of Corona and the fear of a lockdown in more states and cities in India. traders have to be very cautious and careful to make more positions. The reason is that most traders do not have the discipline of sitting on a case of a stop loss.
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