Indian Stock Market Witnesses Worst Week in Two Months Due to Election Nervousness
Despite the Nifty 50 index ending higher on Friday, the Indian stock market experienced its worst week in nearly two months due to nervousness surrounding the ongoing elections. The Nifty 50 index closed at 22,055, the BSE Sensex at 72,664, and the Nifty Bank index at 47,421. Cash market volumes on the NSE fell about 13% to Rs.0.87 lakh crore. However, the broad market indices rose more than the Nifty, with the advance-decline ratio sharply increasing to 1.84:1.
Trade Setup for Monday
Looking ahead to Monday’s trading session, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, stated, “The short-term trend of Nifty continues to be negative. While there is a possibility of a minor upside bounce in the short term, the market could eventually break down the present support levels and slide down further. Immediate resistance for Nifty today is placed at 22,300 levels.”
Bank Nifty Outlook
Om Mehra, Technical Analyst at SAMCO Securities, highlighted the downward streak of Bank Nifty over the past eight trading sessions. Despite attempts at recovery, every upward movement was met with selling pressure. The immediate support level for Bank Nifty is at 47,880, coinciding with the 61.8% Fibonacci retracement level.
India VIX Analysis
Sumeet Bagadia, Executive Director at Choice Broking, noted that the India VIX is currently in the 17 to 19 range. While the index has tried to break above the 19 resistance level, it has failed to sustain above this crucial point. A sustained close above 19 could lead to the volatility index touching 22 in the short term.
Expert Stock Recommendations
Several experts have provided stock recommendations for Monday’s trading session. Sumeet Bagadia recommended buying Tube Investments of India and Polycab, while Ganesh Dongre suggested buying Bharti Airtel, Bajaj Finserv, and BPCL. Shiju Koothupalakkal recommended buying Laurus Laboratories, Power Grid, and CUB.
Disclaimer
It is important to note that the views and recommendations provided by analysts or broking companies are their own and not endorsed by Mint. Investors are advised to consult with certified experts before making any investment decisions, as market conditions can change rapidly.
