Fresh bear hug could drag the market down to 22,500
Subscribe to enjoy similar stories. The benchmark Nifty index may open sharply lower at around 22,500 points on Monday, following a sharp fall in US equities on Friday. This comes at a time bulls are trimming their optimistic bets and bears readying to break a strong support that’s held up six times since last month.
The market could temporarily bounce off Monday’s lows, but rallies could be sold into, said market veterans. The strong support of 22,800, which was tested six times through Friday, could give way and trap the bulls initially this week, according to derivatives analysts. Market veterans said that global tariff tensions and slowing earnings growth back home have dented sentiment to the extent that potential rallies could be used by investors to trim recent losses.
On Friday, the Dow Jones marked its worst trading session of the year, dropping almost 750 points or 1.7% as US consumer sentiment fell to a 15-month low of 64.7 in February. American households fear President Trump's fresh tariffs could increase inflation and reduce their purchasing power. Read more: FPIs sold ₹780 bn in Indian equities in Jan—Here’s where they raised their stake Ahead of the Dow's closing on Friday, Indian retail investors slashed their bullish bets, causing the Nifty to close below the 22,800 support for the first time since 27 January.
Read more on livemint.com
