Sensex slips by 3000 points this week, if Nifty rolls below this level then there will be chaos
The market slipped 2943 points this week.
The possibility of the US economy going into recession has increased due to the increase in the interest rate by the Federal Reserve by 75 basis points. This is the reason why there is such heavy selling in the market. The market is currently near the Bearish Zone.
The stock market is in awe at the moment. The fear can be gauged from this Sensex ,Share market updates) this week, a decline of about three thousand points was registered. This is the second consecutive week that the market has declined. The Sensex had slipped 5.42 per cent this week and 1.06 per cent in the previous week. Three factors dominate the market at the moment. Inflation, interest rate hike by the Federal Reserve and now the US economy (Recession in US) Strong potential for lethargy. The effect of these factors is that this week a huge decline of 2943 points was recorded in the Sensex and last week 1466 points.
This week Sensex closed at 51360 level and Nifty closed at 15293 level. Market experts say that if the Nifty falls further by 411 points, then the stock market will enter the bearish zone, which will be a bad situation. There is a possibility of the stock market going into the bearish zone, as it has been the worst performance of the last two years on a weekly basis. If Nifty slips below 14882 then it will be bear market.
These giants at 52-week lows
At present, there are giants like Asian Paints, Bajaj Finance, Bajaj Financial Services, Tata Steel, UltraTech Cement, Wipro, Tata Consultancy Services, Infosys, HDFC, Tech Mahindra, IndusInd Bank, SBI Card, LIC, Axis Bank, NMDC. These stocks continue to decline and are reaching their new record low levels.
What will be the future trend of the market?
Anuj Gupta of IIFL Securities said that Nifty has also broken the strong support of 15500. Now the next strong support for the market is the 15000 level. Based on the current situation of the market, there is a possibility of Nifty going up to the level of 14800 and 14600. Nifty is expected to trade in the range of 15000-15700 in the short term. If the buyers dominate the lower levels, then the first target will be 15900 and then 16200 if the 15700 level is broken. If 15000 level is broken then Nifty will slide to 14800 level easily.
The market will react to the action of the Federal
S Naren of ICICI Securities said that the bull market is now moving towards the bear market. Until the US Federal Reserve says that it will no longer increase the interest rate, the market will remain uncertain. In this meeting, the Federal Reserve increased the interest rate by 75 basis points more than the market estimate.
Interest rate hike possible again in July
It is believed that in the meeting to be held in July, the interest rate can be increased by 75 basis points. Talking to the media, Federal Chief Jerome Powell also said that many factors are important. Energy has become expensive due to Russia’s attack on Ukraine. The problem of supply also persists and the commodity is continuously making new records. The effect of all these factors is visible.
Long term investors can take entry
Giving tips to investors, Vinod Nair, Head of Research, Geojit Financial Services, said that the market will remain volatile in the short term. Medium and long term investors can take advantage of this fall. Well, at this time investors need to wait.