Will Indian Markets Dip Again? GIFT Nifty Suggests a Quiet Start
Will Indian Markets Dip Again? GIFT Nifty Suggests a Quiet Start
Indian markets are looking at a muted opening today, according to the GIFT Nifty, which rose just a tiny bit, around 0.1 percent. This comes after a tough session yesterday where both the Nifty and Sensex extended their losing streak for the third day in a row.
Global Factors Weighing on Investor Sentiment
There are a few key things that are likely affecting investor sentiment right now: global trade uncertainties, foreign investors selling off their Indian stocks, and a less-than-stellar earnings season.
Even Wall Street, which had been on a winning streak for six sessions, took a break yesterday. All three major indices – the Dow Jones, Nasdaq Composite, and the S&P 500 – closed in the red.
Mixed Performance in Asia
Other Asian markets had a mixed performance. While benchmarks in Australia, South Korea, and Hong Kong went up, Japan’s Nikkei 225 and the broader Topix index saw only a slight increase.
Foreign Investors Pull Back
Yesterday, foreign institutional investors (FIIs) continued to sell off Indian equities, offloading a whopping Rs 10,016 crore worth of stocks – their biggest single-day selloff in over two months. In contrast, domestic institutional investors (DIIs) bought Rs 6,738 crore worth of stocks, providing some support to the market.
Technical Analysis Points to Weakness
Hrishikesh Yedve, AVP at Asit C. Mehta Investment Intermediates, points out that the Nifty formed a large red candle on the daily scale, indicating weakness. The index also breached a major support zone, signaling further potential decline.
Looking Ahead
The immediate resistance for the Nifty is at 24,850. If the index stays below this level, traders are advised to be cautious and focus on specific stocks.
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