The market opened in the red for the fourth consecutive trading session. On Wednesday morning, Nifty fell 28 points to 26,004 and Sensex rose 12 points to 85,150. Bears appeared dominant in early trade 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.
Immediate support at 25,968
Devarsh Vakil of HDFC Securities said that after five consecutive days of decline, US markets closed in the green yesterday. This rally was due to the rebound in cryptocurrencies including Bitcoin. There is a 90% chance that the Federal Reserve will cut rates on December 10. For this reason, a boom 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. At the same time, if there is a rebound, it can come back to the level of 26,300.
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 expects a rate cut of at least 25 bps. Rupee has fallen below 90 and has reached its 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 announce its rate cut decision next week. This will change the sentiment in the global market.
Selling of Financial Investment Investments (FIIs) a matter of concern
Continuous selling by FIIs is a major cause of concern for the market. Continuous selling of rupee is a big factor. 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. In such a situation, there will be more activity in the primary market and there will be lack of liquidity in the secondary market. There is no specific update regarding the trade deal with America.