News Karnataka
Friday, December 01 2023

Nifty Records Third Consecutive Weekly Decline:

Nifty down for third consecutive week
Photo Credit : IANS

New Delhi: According to Deepak Jasani, the Head of Retail Research at HDFC Securities, the Nifty index has suffered a drop for the third consecutive week, experiencing a decrease of 0.45%. He remarked that this trend continued on Wednesday, with Nifty’s performance reflecting weakness carried over from the preceding session. Jasani also noted that with the conclusion of the Q1 earnings season, there seems to be a general inclination towards profit-taking across the markets. This trend is amplified by unfavorable global cues. He identified the potential support level for Nifty at 19300, while 19645 could pose as a resistance. He cautioned that if the support at 19300 is breached, Nifty might descend to 18887 in the coming weeks.

On August 11, Nifty faced its second successive decline, influenced by negative global cues. By the close of trading, Nifty registered a 0.59% drop, equivalent to 114.9 points, settling at 19428.3. Notably, broader market indices experienced smaller losses compared to Nifty, although the advance-decline ratio decreased to 0.65:1.

The week saw declines in both European and Asian stocks, as geopolitical tensions between China and the US, coupled with weaker economic data in China, impacted market valuations. Furthermore, a more cautious stance from a US central banker increased the risk-off sentiment among traders, contributing to the unfavorable market atmosphere, as explained by Jasani.

Offering additional insights, Vinod Nair, Head of Research at Geojit Financial Services, highlighted the persistent selling pressure in the domestic market. The decline in banking stocks was attributed to the RBI’s liquidity absorption measures. Moreover, concerns surrounding inflation weighed heavily on market sentiment. Despite the US Consumer Price Index (CPI) reporting lower-than-anticipated figures and the UK Gross Domestic Product (GDP) surpassing estimates, the overall global sentiment remained negative.

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