Volatile times for global markets. Even as the Asian markets plunged lower, Indian markets opened a gap-up after a 1-day break. The Nifty is trending closer to 22,800 and top market observers indicate that the Nifty 50 needs to cross the 22,800 mark on a decisive note to turn the trend.
“Should we fail to push above 23140 or float above 22850, expect weakness to emerge. But, we expect another wave of buying should we land in the 22500 vicinity subsequently. Expect weakness to dominate if below 22350, though a fall below 22160 is less likely. Alternatively, a direct rise above 23140 could initiate a fresh wave of buying,” said Anand James, Chief Market Strategist at Geojit Investments.
“A convincing follow-through is required to reignite bullish momentum,” said SAMCO Securities. “The 22,300–22,200 belt has now turned into a dependable support base, bolstered by strong put writing activity,” added SAMCO Securities.
Shrikant Chouhan, Head of Equity Research at Kotak Securities said, “We believe that the current market texture is non-directional; traders may be waiting for a breakout in either direction.”
Taking a very conservative approach Jatin Gedia, a Technical Research Analyst with Mirae Asset Sharekhan said, “Daily momentum indicator has a negative crossover, and the hourly momentum indicator has reached the equilibrium line suggesting that the pullback has matured and can start the next leg of the decline,” added Gedia.
Apart from that, markets all over the world are witnessing heightened volatility as the trade war between the world’s two largest economies escalates. US President Donald Trump raised the tariff rates on China by 125% in addition to the earlier 20% duty, levying a total of 145% tariffs on Chinese goods. In retaliation to this, Beijing has implied a tariff of 84% on US imports.
On Wednesday the NSE Nifty 50 closed the session 137 points or 0.61% lower at 22,399, while the BSE Sensex lost 380 points or 0.51% to close at 73,847.