Dear Trader –
The BSE benchmark Sensex fell 523 points or 0.81%
to settle at 64,049. The broader NSE Nifty declined 139 points or 0.72% to end
at 19,130.
The market capitalisation of all listed companies
on BSE declined by Rs 2.03 lakh crore to Rs 309.27 lakh crore. The market
breadth was skewed in the favour of the bears.About 2,551 stocks declined, 1,140
gained, and 108 remained unchanged on the BSE.
Here are 3 top factors that triggered the market
rout:
1) Global Markets: Nasdaq 100 Index futures
dropped as Microsoft Corp. and Google’s parent Alphabet Inc. delivered a mixed
picture of big tech earnings. Contracts on the Nasdaq sank 0.8% and those on
the S&P 500 were down 0.5%. Europe’s stock benchmark was also weaker as
earnings from some of the region’s biggest consumer-facing companies stoked
concerns that a global economic slowdown is hurting corporate profits.
2) US bond yields: The 10-year treasury bond
yields were up 0.20% at 4.859%. This triggered panic action on D-Street.
3) Financial stocks, IT, and auto stocks lead
fall: Selling pressure was seen across sectors with financials, IT, and auto
stocks playing spoilsport. These sectors have a significant weightage in both
Nifty and Sensex.
The market fell despite the rupee’s gains against
the dollar and a pullback in the prices of crude oil. From the sectoral front,
Nifty IT, Nifty Auto, and Nifty Financial Services declined over 1% each.
Meanwhile, Nifty Realty and Media also plunged 2.1% and 2.9%, respectively.
Nifty futures opened at 19306.00 points against the previous close
of 19269.20 and opened at a low of 19068.20 points. Nifty Future closed with an
average movement of 281.30 points and a decline of around 139.20 and 19130.00 points…!!
At the start of intra-day trading December gold opened at Rs.60478
fell from a high of Rs.60642 points to a low of Rs.60436 with a rise of 98 points,
a trend of around Rs.60635 and December Silver opened at Rs.71629, fell from a
high of Rs.71987 points to a low of Rs.71341 with a decline of 261 points, a
trend of around Rs.71525.
Meanwhile,
This correction is considered a routine
occurrence within the framework of a structural bull market, characterized by a
significant retreat following a period of exuberance in midcap, smallcap, and
SME sectors. This adjustment can be attributed, in part, to fluctuations in US
bond yields and concerns surrounding the situation in Iraq, though these
factors are largely seen as convenient excuses for the market’s pullback. This
could present an attractive buying opportunity for investors looking to
participate in the anticipated pre-election rally.
Technically,the
important key resistances are placed in October Nifty future are at 19130 levels,
which could offer for the market on the higher side. Sustainability above this
zone would signal opens the door for a directional up move with immediate
resistances seen at 19202 – 19303 levels. Immediate support is placed at 19009 –
18939 levels.
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