At 11.50 am, the broader Nifty declined as much as 3.39% or nearly 600 points as the Nifty index breifly slipped below 17,000 to 16,997.85 in the biggest fall since April 2021.
central bank’s Federal Open Market Committee meeting, which is scheduled to meet on January 25-26, in want of clues on its interest rate hikes.
Major Asian markets were trading in the negative ahead of the FOMC meeting, as Hang Seng index traded lower by 0.97%, Shanghai Composite traded flat with negative bias, while SGX Nifty Futures corrected massively by 294.50 points or lower by 1.67% to 17,342.50, as reflected in the headline indices.
European stocks too turned bearish,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
As many as shares of five new-edge companies tanked to new 52-week low, correcting as much as up to 20 per cent on a single day, tracking losses in IT shares.
In the month of January so far, FIIs remained net sellers to the tune of Rs 15,563.72 crore in the Indian markets.
Covid cases remained on the higher side despite some relief in select states.
We are underperforming today and the main reason is global weakness, while another reason is some margin calls got triggered, especially in new edge companies and that is causing a ripple effect.
He said the level of 17150 will be a critical support level which is a 61.8% retracement of the previous rally from 17410 to 18350; below this, we can expect nifty to move towards its 200-DMA that may coincide with 16800 level.
“The overall trend is bullish where we are seeing a period of correction and this may surprise us with a deeper cut but that will be a good buying opportunity.
“However the long-term, trend in the first quarter of any calendar year means January to March remains weak.