On Monday, the stock market faced selling pressure due to various global and domestic factors. Let’s break down what happened in simple terms:
Global and Domestic Impact
Global Factors: US President Donald Trump announced a tariff war with countries like Canada, Mexico, and China. This created fear in global markets, impacting European, Asian, and Indian indices.
Indian Factors: The budget announcements on Saturday did not bring any exciting news for industries that require heavy investments. This disappointed market participants.
#Market Performance
- Sensex: Ended at 77,186.74, down by 319.22 points (0.41%).
- Nifty: Closed at 23,361.05, down by 31.75 points (0.52%).
Banking, energy, and FMCG (fast-moving consumer goods) stocks fell sharply, while the IT sector tried to support the market.
Expert Opinion on Market Movement
Dr. Praveen Dwarakanath, Vice President of Hedged.in, explained:
– Nifty showed strength by taking support near the middle of the Bollinger band (a technical indicator). Momentum indicators on the hourly chart, which had dropped earlier, started showing positive signs.
– Nifty formed a hammer candle, which is often seen as a bullish signal, indicating a possible rise toward 23,800 levels in the coming sessions.
Trading Outlook for Tuesday
Positive Signs: Bullish momentum suggests that Nifty might move upward.
Key Support and Resistance: Support at 23,300 and resistance at 23,800 levels.
Options Data: Analysts observed heavy writing of put options at 23,300 and call options at 23,500, hinting at a range-bound market.
What Should Traders Do?
- Keep an eye on 23,300 support levels.
- Watch for momentum near 23,800 resistance.
- Use technical indicators to guide your decisions.
In simple words, the market may remain stable or show slight improvement if global and domestic conditions do not worsen. Traders should remain cautious and monitor key levels for better decision-making.
