Mumbai, Dec 21
Indian benchmark indices declined 5 per cent this week amid global selloff, mainly triggered by the US Federal Reserve's caution approach for rate cuts next year, which resulted in relentless selling by the foreign institutional investors (FIIs).
With this, Sensex lost over 1,000 points in three out of five trading sessions this week, and nearly Rs 17 lakh crore worth of market cap was eroded out of BSE-listed firms.
According to market experts, it had been a dreadful week for the equity markets, as the key indices fell dramatically, erasing the gains of the last four weeks.
“The benchmark index experienced a significant decline, plummeting approximately 1,200 points from the previous week's closing figure. As a result, it finished the week below 200 simple moving average (SMA), marking a total loss of nearly 5 per cent,” said Osho Krishnan from Angel One.
The Nifty50 experienced a significant decline, as it breached all essential support levels. This downward movement has led the index to approach its most recent swing low, signalling potential volatility in the market.
From a technical standpoint, as Nifty slipped below the pivotal zone of 200 SMA, the next potential support could be seen around the recent swing low around 23,200-23,100, while a decisive breach is likely to open further downside towards 22,800 in the near period, said Krishnan.
The weak global cues initiated the downward move, but the follow-up sell-off showcases the bears' eagerness to colour the market red ahead of Christmas.