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Sensex crashes 1700 points, Nifty slips below 17,000 as new variant spooks investors

Sensex crashes 1700 points, Nifty slips below 17,000 as new variant spooks investors

The 30-share index tumbled over 1700 points to hit an intraday low of 56,993.89 and Nifty slipped below 17,000 mark to hit an intraday low of 16,985.70 as rising cases of a new coronavirus variant in South Africa spooked global markets.

Sensex crashes 1700 points, Nifty slips below 17,000 as new variant spooks investors Sensex crashes 1700 points, Nifty slips below 17,000 as new variant spooks investors

What a freaky Friday it was for the Indian markets! The 30-share index tumbled over 1700 points to hit an intraday low of 56,993.89 and Nifty slipped below 17,000 mark to hit an intraday low of 16,985.70 as rising cases of a new coronavirus variant in South Africa spooked global markets.

Equity benchmark Sensex plummeted over 800 points in early trade today on heavy across-the-board selling amid a negative trend in global markets and unabated foreign fund outflows.

Israel has identified its first case of the COVID-19 variant which was first detected in South Africa. “The variant discovered in southern African states has been identified in Israel,” the Israeli health ministry said.

Only 4 stocks ended in the green on BSE including Dr Reddy's, Nestle india, Asian Paints and TCS.

Technical view by Jay Thakkar, VP and Head of Equity Research, Marwadi Shares and Finance Ltd.
 
Nifty has reversed with a break down from the bearish head and shoulders pattern. The neckline resistance of the same is pegged at the 17600/17700 range whereas the target comes to 16900/16700 levels. The momentum indicator MACD has gone into sell mode on the weekly charts as well which is quite negative.
 
November is a negative month and if December also closes in the negative territory, then there will be a quarterly negative close which will happen post six consecutive positive quarterly closes.
 
Hence, going ahead in the December series the outlook is negative and we recommended lightening the long positions and aggressive traders can also short sell on rise.