Euphoria turned into a gut punch for the market today, as the Nifty tumbled 500 points from its peak to finish over 300 points lower. While the reason for the sudden reversal remains unclear, several factors could be at play. The easy money sentiment buoyed by a buoyant primary market may have set the stage for a correction. Additionally, tight liquidity among HNIs due to their involvement in IPOs could have contributed to the selling pressure. The recent rise in COVID cases may also be serving as a convenient excuse for some investors to exit.
Technically, the Nifty is attempting to fill the gap formed around 21,000 following the Fed meeting. This zone between 21,000 and 20,950 is likely to act as strong support, with the 20-DMA at 20,700 offering further downside protection. For long-term investors, this dip presents a potential buying opportunity, while traders should remain cautious and wait for a clear direction to emerge.
Comments
Post a Comment