Stock market continues to fall
US President Donald Trump’s impact of 25% of additional tariffs imposed on India was clearly seen in the stock market on Thursday. The Sensex opened with a decline of over 200 points, and the Nifty also dropped more than 50 points. Due to this decline, the market cap of listed companies in BSE was reduced by Rs 1.61 lakh crore.
The BSE Sensex on Thursday launched trading at 80,262.50, which was about 281 points from its previous closed level 80,543.99. At the same time, NSE Nifty 50 also made a weak start. It opened at 24,464.20 levels, which was about 110 points from the previous closed 24,574.05.
Technical signs of Nifty weakened
On August 6, the Nifty’s business session was completed with a decline. The index slipped by 75 points. According to technical analysts, the index is currently trading below all the major moving averages. Due to this weakness, the mandis are likely to be strengthened. The level of 24,473 is now important support for Nifty, which is the lower level of June. If it breaks, the index can slip towards 200-day EMA i.e. 24,200, which is considered a strong technical support in the market. At the same time, if there is any recovery at the top, then the first resistance is being seen at 24,700.
VIX bounce an atmosphere of fear in the market
Indicator India Vix, which measured fear in the market, rose 2.11% to 11.96 on Thursday. It has gone above its short term moving average, which can cause pressure to the stunning. In the last two weeks, VIX has gained about 11.6%, which is a sign of increasing uncertainty in the market.
On August 5, the Nifty’s put-kall ratio (PCR) fell to 0.74, while in the last session it was at 0.83 levels. The put-kall ratio usually reflects the feeling of recession.
Analysts believe that Trump’s tariff decision has already affected the market under pressure. If the selling of foreign investors increases, then there may be further decline in the coming days.
Total 50% tariff on India
Significantly, Trump had already imposed 25% tariffs on goods from India to America. On Wednesday, he increased it by 25%, due to which the total tariff has increased to 50%. This decision has become a matter of concern for Indian exporters as well as investors. Its impact on both trade and stock market can be clearly seen.