Stock Market Today May Get Black Friday Hit Amid Gloomy Cues
Stock Market on Tuesday! (Image credit X.com)
NSADAQ Tumbles While Bond Yield & Dollar Index Spike
By S Jha
New Delhi, February 28: The stock market today faces a major risk of sharp corrections. The US bourses crashed last night, tracking a mix of cues.
NASDAQ tumbled 525 points in overnight trade in the US. The tech-index lost a whopping 2.75 per cent. S&P also lost 1.75 per cent. Dow Jones too crashed.
Hotter inflation number in the US is fueling fear of the Federal Reserve striking hawkish stance. The earnings failed to cheer the traders.
The tech-crash in the US bourses came on the back of Nvidia reporting a poor set of numbers. It may be noted that the Indian IT stocks closely track performance of NASDAQ. A crash in the shares of Indian IT stocks is feared by traders on Friday.
Also, the Indian indices have been crashing on Fridays in a curious pattern. The treasury bond yields also spiked in the US for 10-year tenure. At the same time, the dollar continues to strengthen.
Market participants are increasingly becoming worried of the consequences of the US tariffs coming in force on March 4. Also, another set of tariff measures will come in force from April 1.
Nifty is already staring at a major support of 22500. Stock market analysts have warned that a crack of 22500 for Nifty will open the way for a major crash. StockEdge on Wednesday said that 21800 on Nifty may become possible if 22500 cracks on the 50-share index.
Bank Nifty is also holding out a major support. But the banking index is also facing risk of a major crash if the support sinks, warned analysts. The gloomy scenes at the stock market have turned dark further with several of the scrips trading at 56-week lows.
Only the financials and the banking stocks showed strength in the yesterday’s session. The metal stocks also showed strength. But the market participants warn that a lack of leadership by heavyweights may expose indices to bear attacks.
Analysts are advising investors to track dollar index and bond yields for cues on directions of the stock market. They are also cautioning traders from holding overnight positions in the market.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)
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