Stock Markets on Monday – US markets, Covid-19 to trigger movement of domestic bourses, Anil Singhvi says; spells Nifty, Bank Nifty strategy
New Coronovirus variant wreaked havoc on the global stock markets on Friday including India. The domestic markets closed at their three months low levels. Nifty50, fell by over 509 points or 2.9 per cent to end at 17,026. Meanwhile, BSE Sensex ended at 57,107, lower by 1687 points of 2.9 per cent from the Thursday closing levels
The new Coronovirus variant wreaked havoc on the global stock markets on Friday including India. The domestic markets closed at their three months low levels. Nifty50, fell by over 509 points or 2.9 per cent to end at 17,026. Meanwhile, BSE Sensex ended at 57,107, lower by 1687 points of 2.9 per cent from the Thursday closing levels.
Nifty Bank also registered a 1339 points correction to close at 36025.
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Zee Business Managing Editor said that the Start of December series and the end of week witnessed heightened pressure on the stock markets.
When it appeared that the December series could see an optimistic beginning, the new coronavirus variant came as a shocker. The new Covid-19 variant in South Africa and growing number of cases in Europe have created a panic in the stock markets, he added.
It started from US Markets which saw Dow Futures tumbling down by over 800 points. It spread across Asian markets and in India, while the sentiment in the domestic markets was already one of a weak one.
It is for the first time since 30 August that the Nifty has dropped below 17,00 levels, the Managing Editor said. Barring the pharma sector, all other sectors displayed a selling trend. It was similar to what markets saw during the first wave of the coronavirus.
Anil Singhvi Strategy for Monday
While the status of Dow Futures will set the tone when the markets reopen on Monday, the news around developments on the Coronavirus front will impact the market movement, Singhvi said.
He said that the support though is around 17,000, any trader lower than this will open risks further for downward movement.
He said that range between 17,200 and 17,300 will acts as immediate hurdle.
As for Nifty Bank, the immediate support is around levels of 36,000. The resistance will be between 36,650 and 36,850, the Market Guru said.
The cues must be taken from global markets and developments around Covid-19 considering the selling that happened on Friday, Singhvi said.
The selling pressure on Foreign Institutional Investors (FIIs) pulling out money from Indian equities may continue if there is some recovery as investors could look to book profits, he further said.
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His advice to traders is to remain vigilant and maintain fewer positions.
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