InvestorQ : How do you see the stock markets on Tuesday 08th March and how much further downsides you see for the market from these levels?
Sam Eswaran made post

How do you see the stock markets on Tuesday 08th March and how much further downsides you see for the market from these levels?

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diksha shah answered.
2 months ago
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On Monday 07-March, the Nifty fell by a full 382 points and Sensex by 1,491 points. In short, it was just another regular day of heavy selling. The trigger came from the crude prices which crossed $130/bbl but closed the day around $125/bbl as oil traders covered their long positions. However, the structural shortage in oil is still a major issue impact markets.

In terms of the market data points on Monday, the advance decline ratio was negative at 12:38 while the volatility fear index or the VIX surged once again sharply to 29.33 levels. Stock market tends to get jittery, once VIX levels cross beyond the 30 mark. In terms of specific sectors, it is oil and metals which are still riding the commodity rally.

FPIs sold another $1 billion in Indian equities on Monday while domestic funds and LIC bought stocks worth Rs.5,331 crore. FPIs sold over $30 billion since October 2021. In global markets, Dow lost 797 points and NASDAQ was down 483 points. Meanwhile Europe lost another 1-2% after the sharp crack on Friday. SGX Nifty is down 65 bps in early trades.

In terms of Nifty outlook, the index is already down 15% from the peak and the damage to individual stocks has bigger. Surprisingly, while Nifty is down 15% from the recent highs, 40 out of the 50 stocks on the Nifty have lost more than the benchmark index. You can say there are opportunities emerging, but we need to wait for markets to bottom out.

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