Stock Market Today: Nifty Can Crack 1k Points if Support Sinks
Indian stock Markets Image credit X.com
Multiple Factors Send Stock Market Crashing
By S Jha
New Delhi, January 27: An all-round crash in the stock market sent Nifty crashing to the crucial support level of 22800. If the 50-share index further cracks from the support level, market participants claim there could be steep fall in near future.
“The market is at an extremely crucial support level of 22,800 today,” said StockEdge, a stock market advisory in a post-market note. It speculated that “if we turn from the support zones of 22800 – 23000 or we are in for a deeper cut of further 1000 points” while noting that the first week of February will be crucial for the stock market.
Nifty 50 held above the level of 22800, but today’s move is an indication of the internal weakness of the market and that the markets are predominantly taken over by the bears,” added StockEdge.
The advisory firm also stated that Bank Nifty is also holding out at a key support level of 48000. “Nifty Bank relatively was less weak today due to strength in ICICI Bank post its Q3 result announcement. The index had also breached the key level of 48000 but overall managed to close above it,” added StockEdge in a post-market commentary on Monday.
The bearish sentiments in the stock markets have turned the mood sombre. “Stocks down 10 to 15 per cent in a day will become a new normal,” remarked Amit Seth, a stock market analyst in a post in his Telegram channel. He advised the traders to be extremely cautious in the market.
StockEdge in its commentary counted several factors which are hurting the stock markets. “Investors are feeling uneasy due to a combination of mixed quarterly earnings reports and the anticipation of the upcoming Union Budget 2025,” added the Kolkata-based advisory firm.
Several companies have reported lower-than-expected profits, it stated. “For instance, IDFC First Bank’s net profit dropped by 53 per cent year-on-year due to challenges in its microfinance segment. This led to an eight per cent fall in its share price, hitting a 21-month low,” said StockEdge.
The firm also stated that the US “President Donald Trump’s recent imposition of a 25 per cent tariff on all Colombian imports has also heightened concerns about potential escalating trade tensions”. The US withdrew the decision after Colombia agreed to take back all illegal immigrants from the US of Colombian origins.
The Reserve Bank of India’s measures to curb retail lending have led to a slowdown in credit growth. This has resulted in increased provisions for bad loans and a rise in non-performing assets for several banks,” stated StockEdge.
It cited the example of HDFC Bank, saying it “increased its loan loss provisions by 17 per cent and saw its non-performing assets ratio rise”. “Also, an uncertainty surrounding the US trade policies has added to investor caution, impacting market performance. Weak Q3 corporate earnings hit Indian markets,” added the advisory firm.
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
