Business News Desk – Due to weak trend in global markets and withdrawal of foreign investors, Indian stock market fell heavily today on 6 September. Sensex fell by 1,017 points, while Nifty fell by 293 points. This was the third consecutive day of decline in the stock market. During this entire trading week, Sensex and Nifty fell by about 1.5 percent.
Investors appeared cautious ahead of the release of some important data related to the US economy. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, ‘In the short term, the movement of the stock market will now be affected by the US employment data. These figures are going to be released late Friday evening. These figures will reveal when and how much the US Reserve will decide to cut interest rates in its upcoming meeting.’ Meanwhile, let us know how the stock market can move on Monday, September 9-
How can the situation be on Monday, September 9?
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said Nifty opened flat today and declined by 280 points. On the daily chart, we can see that Nifty has now reached its crucial support zone of 24850 – 24800. This matches its 20-day daily moving average. We expect Nifty to remain in this support zone and hence our short-term positive stance on Nifty will continue. For this, immediate resistance is placed at 25,000.
Religare Broking Senior Vice President (Research) Ajit Mishra says that due to weak global cues, the markets came under pressure on Friday and closed with a decline of more than one percent. After a flat start, the Nifty fell gradually throughout the day and broke several support levels to close at 24,852.15. There was an all-round sell-off, with banking and energy suffering the most. The broader market also saw a decline. Both midcap and smallcap fell by more than one percent.
Recent weakness in the US markets has halted the momentum in the Indian markets. Investors have turned cautious ahead of US employment data. Nifty has fallen below its 20-day exponential moving average (DEMA) and is likely to fall further. The next immediate support for it is seen around 24,500, which is its 50-day exponential moving average. For now, one should avoid taking aggressive positions in the market and place strict stop losses on existing trades.
