Mumbai: After the initial fall in the stock market on Monday, the atmosphere appeared to be calming down. There was pressure on the market due to the news of increasing tension between America and Iran, but buying by investors at lower levels took care of Sensex and Nifty. During trading, the Sensex jumped by nearly 700 points from its day’s low, while the Nifty once again returned above the 23,000 level.
Was there huge weakness seen in the market in the morning?
The beginning of the day was not good for the market. There was so much selling pressure in early trade that the Sensex slipped to near 72,949. Nifty had also fallen below 23 thousand to 22,955. However, after some time, buying started returning in the market and the indices gradually started recovering their losses.
At what time did the market recover?
The market trend appeared to be changing in pre-noon trading. Around 11:30 am, the Sensex was seen trading near 74,687 with a gain of about 123 points. At the same time, Nifty also rose by about 43 points and reached around 23,194.
Which shares saw the biggest rise?
More buying was seen in shares of metal and cement sectors. Shares like Hindalco, UltraTech Cement, Grasim and JSW Steel supported the market. On the other hand, shares like Bharat Electronics, Power Grid, Max Health, Shriram Finance and Coal India declined.
Did the market recover due to buying at lower levels?
Market experts believe that after the continuous decline, many investors saw an opportunity to buy at lower levels. Due to this, there was a slight rise in the shares of metal, auto and FMCG sectors and the market decline stopped.
Is there some relief in volatility?
India VIX, considered an indicator of market nervousness, fell nearly three per cent to below 22 on Monday. However, analysts say that VIX is still above 18, so volatility may remain in the coming days.
Did global events also have an impact?
A slight improvement in market sentiment also came after the news that America is trying to form an alliance with several countries for the security of ships in the Strait of Hormuz. Along with this, the news of India’s two LPG tankers ‘Shivalik’ and ‘Nanda Devi’ safely crossing Hormuz reduced the concerns about energy supply.
What are experts saying about the market going forward?
According to technical experts, at present the weakness in the market has not completely ended. He believes that until Nifty remains firmly above 23,500 and Sensex 75,300, the market may remain under pressure. On the downside, levels of 22,800 and 22,600 are considered important supports.
