The Indian market started the week on a negative note on Monday as US inflation in May spooked global markets. Sensex crashed 1,456 points to 52,846 and Nifty declined 427 points to 15,774 in the first trading session of this week.
The 30-stock index tanked 1,569 points intraday to 52,734 against the previous close of 54,303. Nifty fell up to 452 points to 15,749 against Friday's close of 16,201.
The market cap of BSE-listed firms fell to Rs 245.33 lakh crore against Rs 251.81 lakh crore market cap in the previous session, translating into a loss of Rs 6.48 lakh crore. BSE midcap and small-cap indices slipped 613 points and 814 points, respectively.
Banking stocks were the top losers with the BSE bankex ending 1,241 pts lower at 38,494. IT, capital goods and consumer durables indices fell 1,156, 745, and 743 points, respectively. Bank Nifty crashed 1,078 points to 33,405.
Here's a look at what analysts said about the expectations from the market today.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"The short-term trend of Nifty continues to be negative. Having reached crucial lower support of 15,700 levels and a formation of unfilled weekly opening downside gap, there is a possibility of an upside bounce from the lows of around 15,500-15,400 levels in the next 1-2 sessions."
Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd.
"Going forward, any relief from the ongoing selling saga on the global market could only provide some sign of respite to our domestic market. Meanwhile, the pragmatic strategy would be to stay light on positions and keep a stock-centric approach for trading opportunities. Also, it is advisable to keep a close tab on the domestic macro developments alongside the mentioned levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
"Technically, if the Nifty breaks and closes below 15,700, it will be a major downside event for the market. In such a situation, the index would fall to the level of 15,500-15,400 in the short term. It is advisable to reduce a weak long position below the 15,700 level. Also, Bank Nifty could drop to 32,000 level if it ends below 33,500.”
Deepak Jasani, Head of Retail Research, HDFC Securities
"Investors who are under-invested in equities can start to deploy money in a staggered manner while those who are fully invested can sell some stocks and raise cash on rises. Nifty needs to stay above 15,671 level to prevent further damage. 15,336-15,431 band could be good support for Nifty from where we could witness a short-term bounce."
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