Stock Market reveals pump & dump show to deepen street fear

D P Abhushan listing on BSE

D P Abhushan listing on BSE

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Bears sink Sensex as stock market goes wild in shadow of Middle East tension

By S Jha

New Delhi, April 18: Sensex went crashing down by more than 450 points on Thursday. Nifty cracked on the day of weekly option contract expiry. The 50-share index broke down the psychological level of 22000. Bank Nifty seemed cracking amid sharp bear attacks on the street.

It was a day of wild swings on the street. The first half of the day went to the bulls. The other half of the day revealed the ferocious pack of bears who seized the street with sheer brute force.

The crack in the support levels stunned the market participants. The market veterans feared that the wild swings on the street would have kicked out several of the weak hands from the option play.

In a span of just five days, Nifty shed five per cent. Bank Nifty has lost more than 2000 points in just a few days. The Bank Nifty level of 49000 now looks far away. This was the level that the Bank Nifty had touched just recently.

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After TCS, Infosys came with the quarterly results in the off-market hours. Infosys ADR in the US stock market is trading in the afternoon session with a cut of more than one per cent. TCS had also reacted negatively after the quarterly results.

Telecom sector ducked the selloff on the street. Bharti Airtel rose sharply during the day. The telecom major kept gaining strength till the closing of the market on Thursday. It was in sync with Bharti infrastructure.

Bharti Airtel has been trending upwards for several sessions. The market participants claim that the telecom major has given a decisive breakout. Even the likes of Tejas Networks had been strong on a day of fear on the street. Tata-owned Tejas stayed positive and above the level of Rs 800.

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Within the smallcap, Moschip Technologies rocked with a 20 per cent jump in the share price. The market participants claim that Moschip had given a breakout above the level of Rs 115. The scrip is a semiconductor play as per market participants.

The metal pack, particularly Tata Steel and Hindalco, was firm during the day. The sector was positively reacting to the announcement of the US President, Joe Biden, to triple the tariff on the Chinese steel and aluminum imports. However, the Chinese imports in the US are known to be miniscule for steel and aluminum.

The crude oil price was moderately higher in the afternoon session on Thursday. Dow Jones had given up almost all the gains by Thursday afternoon. The US bourses are also on an extended losing streak, tracking hawkish US Federal reserve statements on rates. There is no abating of the fear of the deepening of the Middle East tension as per the geostrategic experts.

(Disclaimer: This article makes no recommendations for buy or sell of shares of any company)

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