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Thursday, July 25, 2024

AWful Thursday! Sensex Drops 900 Points; Investors Suffer Rs 5.8 L Cr; What’s Causing The Market To Drop?

<p>Why Are Today’s Markets Falling?Equities markets fell for a sixth consecutive session on Thursday, reaching their lowest point in four months, as they followed foreign signals. The BSE Sensex was trading below 63,200, down 900 points. Not since June 28 has the Nifty50 fallen below 18,900.<img decoding=”async” class=”alignnone wp-image-253112″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/10/theindiaprint.com-awful-thursday-sensex-drops-900-points-investors-suffer-rs-5-8-l-cr-whats-causing-1-1.jpg” alt=”theindiaprint.com awful thursday sensex drops 900 points investors suffer rs 5 8 l cr whats causing 1 1″ width=”1107″ height=”620″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/10/theindiaprint.com-awful-thursday-sensex-drops-900-points-investors-suffer-rs-5-8-l-cr-whats-causing-1-1.jpg 300w, https://www.theindiaprint.com/wp-content/uploads/2023/10/theindiaprint.com-awful-thursday-sensex-drops-900-points-investors-suffer-rs-5-8-l-cr-whats-causing-1-1-150×84.jpg 150w” sizes=”(max-width: 1107px) 100vw, 1107px” title=”AWful Thursday! Sensex Drops 900 Points; Investors Suffer Rs 5.8 L Cr; What's Causing The Market To Drop? 6″></p>
<p>All BSE-listed businesses’ market capitalization decreased by Rs 303.44 lakh crore, or 5.78 lakh crore.</p>
<p>M&M and Tech Mahindra both had 2.3% share price declines among the Sensex stocks. Asian Paints, Tata Steel, Bajaj Finserv, Bajaj Motors, and Bajaj Finance all opened lower. Every member, with the exception of Axis Bank, traded with cutbacks.</p>
<p>World Cues</p>
<p>US equities fell on Wednesday as worries that interest rates would remain higher for longer were rekindled by the rise in US Treasury yields and the decline in Alphabet shares after weak reports.</p>
<p>broader Asian markets also saw a decline, with Japan’s Nikkei falling more than two percent and China’s blue-chip index beginning 0.51 percent down.</p>
<p>Base Oil</p>
<p>Following Israel Prime Minister Benjamin Netanyahu’s announcement that his nation was getting ready for a ground assault of Gaza, Brent oil surged over $90 per barrel on Wednesday and was circling similar levels in Asia hours on Thursday. For countries like India that import the commodity, higher oil costs are a drawback.</p>
<p>The price of a barrel of Brent oil futures fell 21 cents, or 0.23 percent, to $89.92. US West Texas Intermediate (WTI) crude fell 9 cents, or 0.11 percent, to $85.31 a barrel.</p>
<p>What Is Said by Analysts?</p>
<p>“The Indian market is currently undergoing a notable correction, and even the previously outperforming broader market segments are now witnessing profit-taking, as many had anticipated,” said Santosh Meena, Head of Research at Swastika Investmart Ltd. This correction is seen as normal in the context of a structural bull market, which is defined as a substantial decline after a period of hyperbolic prices in the midcap, smallcap, and SME sectors. Though these are mostly seen as handy justifications for the market’s retreat, this adjustment may be partially ascribed to changes in US bond rates and worries about the situation in Israel.</p>
<p>However, it seems like the market is about to go into a consolidation period ahead of the pre-election rise. Indian markets have historically started their pre-election rallies around half a year before the results of the election. Therefore, it becomes sense to expect a pre-election rally to start around Diwali, he said.</p>
<p>Vice President of Technical Research at Prabhudas Lilladher, Vaishali Parekh, said that Nifty fell sharply as a result of profit booking, extending losses from the previous session and breaking below the critical 19,200 zone during the intraday session, which further weakened the bias and mood overall.</p>
<p>Accurate Technicals</p>
<p>Further decline in market behavior is possible, and the Nifty may challenge its 200-day moving average (DMA) around about 18,700. To participate in the predicted pre-election rise, investors may find this to be an appealing purchasing opportunity. It’s critical that investors maintain their composure and resist the temptation to flee during these market swings. Rather, they need to be ready with an inventory of premium products in order to profit from this decline, according to Meena.</p>
<p>As previously said, a break below the 19,200 zone would lead to further selling pressure, with the 200 period MA serving as the next important support level, which is maintained at 18,800–18,600 levels. According to Parekh, the day’s support is located at 18,950 levels, while the resistance is located at 19,250 levels.</p>

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