Nifty proves vulnerable to global selloff. What investors should do on Monday

After staying away from the global stock market sell-off, the Nifty also showed signs of vulnerability on Friday as it broke its key 17,400 support after falling 302 points. The Fear Gauge Index India VIX rose sharply by 9.2% to 20.5, suggesting volatility could remain high going forward.

Volumes on the NSE were the lowest since September 12th. Technically, the Nifty has formed a lower top formation on the daily charts and a long bearish candle on the daily charts which is broadly negative. 17.166 is the next support for the nifty post which could be followed by a stronger decline.

Here’s what analysts said:

Ajit Mishra, Vice President – ​​Research, Mediation
Markets are finally coming under pressure after showing resilience for quite some time and signs point to a further decline. The Nifty Index has the next crucial support in the 17,100 area. As most sectors trade parallel to the benchmark, it is prudent to also hold short positions. On the other hand, investors should use this phase to build quality stocks in stages.

Amol Athawale, Associate Vice President – ​​Technical Research, Kotak Securities

With the Fed’s recent interest rate tinkering, investors have become risk averse and dump stocks at will. Traders are also concerned about the escalation of the Russia-Ukraine conflict, prompting them to exit stocks and park monies in safe dollar assets.

Palak Kothari, Choice Brokering
Nifty looks weak on charts that may test 17,150 levels over the coming week. A close above 17,700 can indicate an upside rally. For the coming session, it is advisable to sell when prices are rising.

Rupak De, Senior Technical Analyst at
Nifty has fallen sharply after an indecisive candle on the daily chart. The sharp decline has taken the index below the crucial short-term moving average. The momentum oscillator on the daily timeframe is in a bearish crossover. The trend looks bearish which could lead the Nifty towards 17,000 in the near term. On the upper end it has resistance at 17,500.

Osho Krishan, Senior Analyst – Technical and Derivative Research, Angel One
Considering the recent price movements, traders are advised not to make aggressive overnight bets for a while and adjust the strategy to follow step by step respecting the levels on both sides. The unfavorable global scenario was one of the key catalysts for this week’s fall; Therefore, one should keep abreast of global developments and the upcoming important domestic macro data. Also, one can continue to focus on individual stocks as thematic moves are still playing out well in the market.

(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of Economic Times)

https://economictimes.indiatimes.com/markets/stocks/news/nifty-proves-vulnerable-to-global-selloff-what-investors-should-do-on-monday/articleshow/94401298.cms Nifty proves vulnerable to global selloff. What investors should do on Monday

Russell Falcon

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