BackSensex suffers another big selloff, plunges about 1,400 points. What experts say
Financials led the selloff, with Nifty Bank index slumping 6%Technically, for Nifty, 8,100-8,000 is the important support zone to watch out for the near term: Analysts
PremiumIndian shares today suffered a big selloff today with Sensex falling nearly 5%, ending the session 1,375 points lower at 28,440. The broader Nifty 50 index closed down 4.38% at 8,281. Latest government data showed positive coronavirus cases in India rising to 1,071 and death toll at 29. Investors remained cautious despite the Reserve Bank of India on Friday announcing a slew of measures to cushion the economic impact from the virus, including a 75 basis-point rate cut. Among private banks, HDFC Bank, ICICI Bank and Kotak Bank slumped 7% to 8%. Elsewhere, HDFC and Bajaj Finance plunged 11% to 12%.
Here is what analysts say on today's selloff in Indian markets:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
“Equity benchmark indices closed lower for the second consecutive day as the coronavirus threat continued to spook investors. Investors are concerned about the rising number of cases across the globe and the economic fallout due to complete lockdown in most parts of the world. It would be difficult for the market to bounce back in the absence of any positive news flow regarding Covid-19. Technically, Nifty closed below the level of 8500, which is negative. We can expect further weakness if Nifty breaks 8200 level. Below the level of 8200, Nifty could fall to 8000 or 7800 levels."
Vinod Nair, Head of Research at Geojit Financial Services.
"As expected, the markets have set aside the stimulus measures announced by the RBI and the government, and focused on the rising virus infections and its impact on the Indian economy. With a global recession already declared by the IMF, the recessionary forces and the general uncertainty are forcing investors, especially the FIIs, to redeem their investments."
Ruchit Jain, technical analyst at Angel Broking
"Technically, 8,100-8,000 is the important support zone to watch out for the near term. If the index breaches the mentioned support zone then we could see a continuation of the downtrend in the broader markets. On the flipside, 8600 and 8850 will now be be the immediate resistances on pullback moves. During such volatile times, traders are advised to avoid trading aggressively and trade with a proper risk management and an exit strategy. "
Rohit Singre, Senior Technical Analyst at LKP Securities.
''Nifty started a week on weaker note and closed a day at 8281 with loss of more than 4% forming a bearish candle for second consecutive day. Index has strong resistance around 8,550 zone until index is trading below same we may see current fall to continue towards 8150-8000 zone. Nifty Bank closed the day with loss of nearly 6% at 18,782 breaking good support of 19,000 which will act as resistance now for coming sessions and support for Nifty Bank is coming near 18250-17800 zone''.
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