After a sharp fall in Tuesday’s weekly expiry, the stock market remained in the red throughout the day on Wednesday, with benchmark indices closing in the red. However, Nifty managed to close above the level of 25,800. The market opened flat amid mixed global signals. Major benchmark indices fluctuated between the red and green marks, showed slight gains for some time, but then slipped. At around 2 pm, the Sensex was down by about 190 points at 84,490, while the Nifty was trading around 25,789, down by 70 points. A lot of selling pressure was also seen in mid-cap and small-cap indices today.
What is the reason for market weakness?
The biggest reason for weakness is selling by FIIs.
Buying by domestic funds has also slowed down.
Retail investors are also selling, not buying.
Initially it seemed that the weakness of the rupee was the main reason.
However, despite the recovery in the rupee, the market failed to maintain its gains.
The fear of selling is clearly visible on the screen.
Where is the strong support now?
Nifty 25650-25750, Bank Nifty 58650-58825 are the last support ranges.
Closing below this range could result in further weakness.
In case of recovery, selling pressure will be seen in Nifty 25900-26000 and Bank Nifty 59125-59350 ranges.
Sentiment is also very weak in mid-cap and small-cap stocks.
stock in action
SBI
– Shopping returned in government banks.
Shriram Finance
– NBFC shares showed good strength, led by Shriram Finance.
polycab
– Fast profit booking in wire and cable stocks.
dixon
– Fast profit booking in EMS shares.
At around 09:25 am, the Sensex was trading at the level of 84,863 with a gain of 180 points. Nifty was up 60 points at 25,919, while Bank Nifty was up 45 points at 59,080. There was a rise in bank and NBFC shares. Metal stocks were also showing strength today. On the Nifty 50, Shriram Finance, Eternal, Eicher Motors, SBI, Hindalco, Axis Bank and Bajaj Finance were among the top gainers. Whereas, ICICI Bank, Nestle India, HDFC Bank, Max Health, HDFC Life, Trent and Indigo were among the top losers.
Talking about triggers, weak global cues, continuous selling by FIIs and record weakness of Rupee are increasing the concerns of investors. However, a big fall in crude oil prices and strength in gold may provide support to some sectors. Let’s take a look at the main triggers before the markets open today.
GIFT Nifty flat, Asian markets mixed
GIFT Nifty is trading flat around 25,950, indicating a flat to slightly weak start for the domestic market. Asian markets are also showing mixed trends. Dow futures are down nearly 50 points.