Stock Market Volatility: Can Sensex and Nifty Bounce Back?
The stock market’s recent downfall on Wednesday left investors anxious as they tried to decipher what the future holds for Sensex and Nifty. This slip disrupted the market’s winning streak, spurred by concerns over the potential impacts of US reciprocal tariffs set to commence on April 2.
Heavyweight Stocks Suffer
With the banking and financial sectors facing the brunt of the losses, Dalal Street saw a harsh drop. This left investors curious if the recent gains of nearly 2% over the past five sessions could sustain or if this temporary setback marks the beginning of a more significant downturn.
Market Outlook: An Analyst’s Perspective
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, cautioned that profit-booking by investors, compounded by tariff discussions, has kept market sentiment on edge. He shared, “Despite the challenges, we remain optimistic, emphasizing a stock-specific approach focusing on those displaying relative strength.”
FIIs Involvement: A Ray of Hope
Despite the prevailing uncertainties, there’s a silver lining. Foreign institutional investors (FIIs) injected Rs 2,240.55 crores on Wednesday alone, amounting to Rs 21,377.38 crores over the last five sessions. This wave of investment holds potential for market stabilization as noted by Vinod Nair, Head of Research at Geojit Investments Limited.
Essential Technical Levels
Technical analysts have outlined key support and resistance levels for Nifty in the upcoming sessions. VLA Ambala, Co-Founder of Stock Market Today, highlights the crucial support at 23,320, 23,250, or 23,195, with resistance anticipated at 23,570, 23,650, or 23,740.
A Moment for Strategic Decisions
Bajaj Broking Research sees the current market as an opportunity for strategic buying during dips, predicting an upward move towards 24,100-24,200 levels. This view coincides with significant retracement levels that could guide investors on their next moves.
Conclusion: Watchful Optimism
Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity, points out the market’s consolidation phase post a robust rally. He advises vigilance amidst global uncertainties and sector-specific weaknesses.
According to India Today, investors are recommended to consider quality stocks as the market navigates this bumpy path. As disclaimers emphasized, consulting with qualified brokers or financial advisors remains crucial before making investment decisions.
