Stock Market Today May Face Wrath of Black Tuesday
Stock Market on Tuesday! (Image credit X.com)
Global Selloff Unleashes Bear Attacks with Street Turning Nervous
By S Jha
New Delhi, March 4: Stock market crash is on anvil for Tuesday. The US bourses tanked after selloff. The fear of the US economy crashing is spreading fear factor in equity markets.
Nifty is likely to open with gap down. The 50-share index may retest 22000 level. Nifty had almost touched the 22k level in yesterday’s session.
Analysts claim that Nifty’s major support lies at 21800. But analysts also warn that stock market is in midst of sharp corrections. The unabated selloff on parts of the foreign institutional investors is taking down the bourses.
The US bourses – Dow Jones, Nasdaq, and S&P 500 – tumbled down in Monday’s session. The US bourses tanked ahead of the US tariffs of 25 per cent coming in force against Canada and Mexico. The US also has announced additional tariff against China.
Besides, the Federal Reserve Atlanta in its GDP projections claimed that the economy may slump by three per cent. The fear of the US slipping into recession is now being cited by analysts.
If the global cues stay negative, technical support levels of Nifty or Bank Nifty may not work, warned analysts. “The bearish momentum is strong, evident from weak breadth and relentless selling. Moving averages continue to act as resistance, reinforcing the downtrend,” said StockEdge in its Telegram channel.
It stated that there is “no major support before 21,800 for Nifty and we are not far from that level. This is a very important support zone where we will review as how the trend is placed ahead.”
After falling for eight consecutive trading sessions, Nifty had ended on a flat note yesterday. But Nifty had dived into deep red before recovering.
Traders are further worried for two index heavyweights – Reliance Industries and HDFC Bank. Both the scrips are mauled by bears. Shares of Reliance Industries are trading at an almost 16-month low. Shares of the HDFC bank have been weak ever since the banking behemoth revealed retail loan stress.
Analysts continue to warn traders from taking aggressive positions in the stock market. They warned that pullbacks are being dumped with largescale institutional selling.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)
Join the WhatsApp Channel of The Raisina Hills
Follow on Google News https://news.google.com/publications/CAAqBwgKMNK2vwsw39HWAw?hl=en-IN&gl=IN&ceid=IN%3Aen
About The Author
