Sensex Dropped 2000 Points : Nifty Might Hit 16800 24th January 2022
On Monday, the BSE Sensex and NSE Nifty 50 extended their sell-off for the fifth straight day, owing to negative global sentiment and fears about inflation plus monetary policy tightening.
On Monday, the BSE Sensex and NSE Nifty 50 continued their slide for the fifth straight day, owing to negative global sentiment and fears about inflation and monetary policy tightening. According to analysts, increased oil prices, the monthly expiration of January derivatives contracts, and the run-up towards the Union Budget 2022 have all contributed to market choppiness. On Monday, the BSE Sensex fell over 2,000 points, or 3.5 %, to 56,984, whilst Nifty 50 fell over 500 points, or 3.5 %, to 16,998.
According to one analyst, long-term investors might consider entering the markets at these levels. At the closing, the BSE Sensex was down 1,546 points, or 2.6 %, to 57,492, while the NSE Nifty was down 468 points, or 2.7 %, to 17,149.
What’s Dragging Sensex, Nifty?
FPI inflation, sell-off, and rising crude oil prices: Several variables are at play, including foreign institutional investors (FIIs) moving money out of Indian markets, global inflation, as well as increasing crude oil prices. This has had a detrimental impact on the financial sectors, with the BSE Sensex and Nifty being dragged down by the approaching five state assembly elections, budget presentations, and fiscal tightening by several central banks.
Nifty technical: When the Nifty ends below 17200, it might fall as low as 16800.
Concerns about rate hikes and the US Federal Reserve’s speech: This will be critical to observe if this assistance is maintained. Inflation or rake hike fears pulled down Indian markets, he continued, adding the US Fed’s comments this week will be crucial.
Nifty technical: The sales have persisted for the fifth day in a row; Nifty has lost nearly 1200 points since its technical drop of 1800+ points.
Hawkish Fed, weak global cues: As local markets accepted signals from and tracked their international rivals, bears retained a solid hold in Indian markets.