Stock market today: Extending Monday’s late sell-off into another session, Indian stock market benchmark indices fell further on Tuesday. The Nifty 50 index opened marginally higher at 21,751, but quickly came under selling pressure and hit an intraday low of 21,555, registering an intraday loss of about 186 points on Tuesday.
Sensex today opened higher at 72,332 and touched an intraday low of 71,613, registering a loss of over 650 points in Tuesday’s trading session.
Similarly, the Nifty Bank index today opened at 48,194 and touched an intraday low of 47,814 within hours of the stock market opening. Why did the stock market decline today?
According to stock experts, the Indian stock market today dropped due to two main reasons: the first and most important reason is the overbought condition of the Indian stock market and the second is the leopard season. upcoming third quarter 2024 earnings report. rebalancing ahead of the new earnings season and overbought conditions in major benchmarks are ideal to trigger profit-taking.
On why the Indian stock market is down today, Sandeep Pandey, founder of Basav Capital, said: “The Indian stock market is in an overbought mode. In the last two months, the Nifty 50 index has increased by nearly 3,000 points, the BSE Sensex has increased by about 9,400 points during this period while the Nifty Bank index has increased by about 6,350 points during this period. More importantly, this increase in the Indian market continues. Therefore, this correction must be considered a healthy correction as profit recognition by DIIs and FIIs is late. »
Referring to the upcoming Q3FY24 earnings season, Saurabh Jain, Vice President, Research, SMC Global Securities, said, “Earnings accounting is delayed as FIIs and DIIs have remained net long for the past two months . This profit taking is also expected by many as the third quarter earnings season is about to begin and the Indian market has a habit of rebalancing before the third quarter earnings season at the beginning of the new year.
Therefore, this is just a profit-taking and market rebalancing activity when preparing for the upcoming earnings reporting season. »
Stocks should be bought today
On stocks to watch in the current season, SMC Global’s Saurabh Jain said one can look at stocks in the capital, infrastructure, hospitality and FMCG sectors.
Advising bottom fishers to look at top large-cap stocks, Sandeep Pandey of Basav Capital said: “In the recent rally, it is the mid- and small-cap stocks that have recovered the most, in while the top large-cap stocks do not. remains fully engaged in this increase. orient yourself. So I advise bottom fishers to look at 50 Nifty stocks like Tata Consumer, ITC, JSW Steel and Wipro. »
Sandep Pandey said one can also look at Coal India’s inventory levels. However, it is not a stock listed in Nifty.
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