New Delhi: India’s share market fell sharply last week, snapping a three-week streak of weekly advances. Between September 2 and September 6, the Nifty fell 1.52%, while the Sensex fell 1.43%.
The benchmark indices dipped this week, driven by weaker global cues.
“One key factor could be weaker job data from the USA, fueling concerns about a potential global economic slowdown. Additionally, India’s weight in the MSCI Emerging Markets index has surpassed China’s, reaching its highest level. This raises the risk of a strategic reduction in weight allocation, especially given India’s relatively high valuations,” experts said.
Several global and domestic factors will influence the market forecast.
On the global front, the impending US Fed meeting in mid-September is gaining traction, with broad predictions that the Federal Reserve will lower interest rates.
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On the domestic front, the government will issue August inflation numbers on September 12. In addition, investors will closely monitor the rupee’s movement against the dollar, crude oil prices, and the investment trends of foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) in the coming week.
Pravesh Gour, Senior Technical Analyst of Swastika Investment Ltd, said: “Last week, a weakness sign appeared in the Nifty. The main index of the National Stock Exchange (NSE) has closed slightly above 24,850, an important support. If it slips below this, it can go up to 24,000. The zone of 24,600-24,450 is an important support for Nifty. On the upside, the zone of 25,000 to 25,200 is an important resistance level.”
Palka Arora Chopra, Director of Master Capital Services Ltd, said: “Last week, Nifty Bank closed below 50,800. As of now, 50,500 is an important support level for Nifty Bank. If it breaks, the 49,800 level can also be seen in the index. 51,200 and then 51,800 are the important resistance levels for Nifty Bank.”
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–IANS
(Photo: Nitin Lawate/IANS)
