The stock market continued to decline for the fourth consecutive session. On Wednesday, Nifty fell 46 points to 25,986 and Sensex fell 31 points to 85,106. Nifty had slipped to 25,891 during intraday trading. Auto, FMCG, PSU Bank and Consumer Durables were the biggest contributors to today’s decline. Maximum selling pressure was seen in government bank stocks.
How did the market open this morning?
The market opened in the red for the fourth consecutive trading session. On Wednesday morning, Nifty fell 28 points to 26,004, while Sensex rose 12 points to 85,150. Bears appeared dominant in early trading and Nifty slipped below 26,000. At the time of writing the news, Nifty was down by more than 100 points and was trading in the range of 25,925.
Devarsh Vakil of HDFC Securities said that after five consecutive days of decline, US markets closed in the green yesterday. This rise was due to the rise in cryptocurrencies including Bitcoin. There is a 90% chance that the Federal Reserve will cut rates on December 10. For this reason, a rise is being seen in the stock market and crypto. Technically, Nifty’s immediate support lies at 25,968, which is the 20-day EMA. If it goes below this level it may fall to 25,842. If there is a rebound it may come back to 26,300.
Other important factors
Talking about important factors for the market, the meeting of the RBI Monetary Policy Committee is starting today. The announcement will be made on Friday, and the market is expecting at least a 25 bps rate cut. The rupee has fallen below 90, which is the lowest level ever. Therefore, it will be important to see whether RBI takes any steps to stabilize the rupee or not. The Federal Reserve is expected to take a decision on rate cuts next week. This will change the sentiment in the global market.
Selling of Financial Institutional Investment (FII) is a matter of concern
Continuous selling by FIIs is a matter of concern for the market. The main reason for this selling is the continuous selling of rupee. In other words, the continued weakening of the rupee is also contributing to the continued selling by FIIs. Apart from this, about two dozen companies are launching IPOs in December. As a result, there will be more activity in the primary market, while there will be less liquidity in the secondary market. There is no specific update on the trade deal with the US.
