On March 5, the market saw a decline for the second consecutive day today and the Nifty slipped below 15000. Mid- and small-cap stocks that have outperformed the giants for the past 4 trading sessions also slipped into the red mark today.
The Nifty Midcap 100 index lost 2.15 percent today, while the Nifty Smallcap 100 index lost 1.55 percent. The Nifty Midcap 50 was down by 2.79 per cent.
At the end of trading, Sensex closed down 440.76 points, or 0.87 per cent, at the level of 50,405.32. At the same time, the Nifty has fallen 142.65 points, or 0.95 per cent, to close at the level of 14,938.10.
Important reasons that put pressure on the market
Weak global signal
Investors’ sentiment was hit due to rising bond yields and the strengthening of the dollar index. On Thursday, the US equity market saw a decline of 1 to 2 percent. Its impact was visible on Indian markets today.
Constant increase in bond yields and continued strengthening in dollar index has spoiled the game of equity market. Experts say that this can lead to the exit of foreign institutional investors from the country. Due to which there was a weakness in the market.
The rise in bond yields led to a rise in demand for the US dollar, which led the dollar index to rise 0.3 per cent against the world’s second currency and reached 91.88, the highest level in November of last year. Let the dollar index reach 91.63 level.
Oil prices peak at 14 months
Today, oil prices saw a rise of about 2 per cent and reached its 14-month high. Let us know that OPEC Plus countries have decided not to increase supply in April. According to the Writers’ Report, OPEC Plus countries are awaiting further recovery in demand amid the Corona epidemic.
Every increase in the prices of crude oil in India raises its concern. Because the country is the world’s largest oil importer.
These sectors remain in focus
All sectoral indices remain in red mark in today’s business. The metal index was the biggest loser at 2.7 per cent. Similarly, Nifty Bank, Auto, Financial Services, IT and Pharma index closed down 1 to 1.6 percent.
Today the Nifty saw a decline of more than 1 percent and it slipped below its psychological level of 15,000. This is a sign of disappointment in the market. Today the Nifty made the Bearish Cadle on the Daily Chart.
Manish Hathiramani of Deen Dayal Investments said that there was another fall in the market today. However, the Nifty has not broken its medium term support level of 14,700-14,800. If this level is broken, the Nifty may move downwards to 14,400-14,500. Conversely, if we get a bounce from this level, then the Nifty will have to cross the first level of 15,300. After this, the level of 15,500-15,600 can be seen in the Nifty again. Until this happens, the Nifty range will remain bound and choppy.
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