Photo credit Israeli Defence Force
By S Jha
New Delhi, October 25: In five days, Nifty has shed 3.39 per cent while Bank Nifty has tanked by 3.36 per cent. Since the Hamas attacks on Israel, Bank Nifty has tanked by over 1000 points while the damage for Nifty has been almost 400 points.
In a span of 40 days, Bank Nifty has lost almost 6,000 points, declining from the level of 46231, which was seen on September 15 this year. Nifty has lost more than 1000 points in the same period. While the indices have been on losing spree since the Hamas attacks on Israel, the aggressive dumping of the equities by the foreign institutional investors has been a theme seen in the street for the last 40 days.
The smallcaps and midcaps once more bore the brunt of the bears hunting for the bulls in full force. There was no support coming to the indices from any of the heavyweights as they all went under the hammer.
Except for weak defence offered by the metal pack, most of the sectors were seen to be easy prey for the bears. Even while the banking space resisted the bear attack with the State Bank of India rising on the occasion, the Bank Nifty too cracked up as Nifty went down with intensity.
Market participants claim that the indices have broken all the technical support. Nifty broken down the trendline support as well. While the bulls may pray for an oversold conditions for the indices, the lack of clarity in the Middle East poses a big risk for the investors. The market participants are fearing that the US may exploit the Israel-Hamas battle to go after the foes in the Middles East such as Syria, Iran, and Lebanon.
Yet, there were cheers for smart investors who made good picks in the last one year as Newgen Software further extended gains. This scrip has been a runaway success on the bourses. Amber Enterprises, a contract manufacturer, also extended gains, and so was the case for Map My India, which gained four per cent in the day after a full length retracement seen in the counter from the high recently.
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