The period of decline in the stock market continues. Investors have lost approximately Rs 48 lakh crore in the last one and a half month. Amidst all this, foreign investors have withdrawn about Rs 1 lakh crore from the Indian market. Its effect can be seen on the market in future also. According to Mint report, Indian stock market benchmark equity indices Sensex and Nifty 50 are likely to open at a lower level on Monday due to weak global market signals.
Signal coming from gift nifty
GIFT Nifty trends also indicate the beginning of a gap-down for the Indian benchmark index. GIFT Nifty was trading at 23,500 level, which is a discount of about 100 points from the previous close of Nifty futures. Let us tell you that Indian markets remained closed on Friday on the occasion of Guru Nanak Jayanti. On Thursday, domestic equity market indices continued their decline for the sixth consecutive session. Sensex closed at 77,580.31, down 110.64 points, while Nifty 50 closed at 23,532.70, down 26.35 points or 0.11%.
Market may appear negative
HDFC Securities Senior Technical Expert Nagaraj Shetty said that Nifty 50 is now just below the important 200DMA at 23,540. DMA is an indicator which makes it easy to understand the trend while looking at the chart. According to him, earlier this MA had made significant reversal during the period of October 26 and June 4. Nifty slowing the downside momentum below the 200-day EMA on Thursday could be a good sign, but the market needs to show more evidence to consider a possible upside reversal.
What should investors do in such a situation?
At this time, investors should move away from aggressive returns and focus on saving capital safely. He says that diversifying your funds should be the most important topic for every investor at this time. After that, when it comes time to invest, they can consider mutual funds and gold. However, if ET’s report is to be believed, the market may fall further. In such a situation, if a person invests his funds at a gap of some time, then it can become an option for good returns in the long term.
