Last week Indian stock market fell sharply amid heavy selling by foreign investors, geo-political tension, particularly between Iran and Israel and weak Q2 corporate results. Nifty corrected 673 points or 2.70% and gave a closing at 24180.80 on Friday. BSE benchmark Sensex fell 1822 points or 2.24% and closed at 79402.
FIIs are selling
consistently in October, 2024 and till date they have withdrawn Rs. 85790 crore
from the market after a nine month high investment of Rs.57724 crore only in
September,2024.Last week they have sold Rs.20024.22 crore of shares in the
market. DIIs have tried to absorb the selling pressure buying more than Rs.21000
crore of shares, otherwise, the correction could have been massive than what it
is now actually.
Why Foreign Portfolio Investors are Selling so
Heavily?
They are getting
attractive Chinese stocks so cheap due to Chinese stimulus, over elevated share
prices of the Indian stock market, geo-political tension between Iran and
Israel, and weak corporate results. Looking ahead, these geo political
developments, interest rate cut, upcoming presidential election in USA, the
rest corporate results, and impact of inflation, will be closely monitored by
the FPIs.
Indian stock market
will remain closed on Friday on the occasion of Diwali. In the evening there
will be a one hour Muhurat trading to be organized by NSE and BSE to start the
new Samvat 2081.
Technical View of
Nifty: From the below monthly chart of nifty, we can see that there is a huge
bearish candle is formed which is a bearish marubozu candle, and it has
engulfed last two months' candle almost completely. This sign at resistance
reflects the bearishness mood if the market. RSI is going lower to break 60.We
may see some pull backs if it takes support at 60 RSI line. Otherwise, if it
breaks this line with 200 EMA (23400 level) at the same time, the market can
turn into a long duration bear market.
