“Adani crisis’ impact on market is slowly dying down”: Nifty Outlook, Key Levels
By Malvika Gurung
Investing.com -- The domestic market opened the new week on a negative note and extended losses further in the session amid negative global market trends, while most Adani Group stocks continued to slide in Monday’s intraday.
At the time of writing, benchmark indices Nifty50 declined 0.69% to 17,731.3 points and Sensex fell 0.64% or 389.3 points. The market fear gauge India VIX jumped 4%.
In a note provided to Investing.com, Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, stated that the market has been on a twin track, comprising a crash in Adani stocks and stability in the rest of the market.
However, the banking segment, which came under pressure on fears of the crisis impacting banks, has recovered, Vijayakumar adding that the Adani crisis is unlikely to pose any systemic risk to the Indian banking system.
“It appears that the Adani crisis’ impact on the market is slowly dying down. Excellent results from ITC (NS: ITC ) and SBI (NS: SBI ) are likely to support the market,” he said.
Globally, the US CPI data to be published on Feb 14 will be keenly watched by the market, stated the market expert.
On the Nifty outlook, Anand James, Chief Market Strategist of Geojit Financial Services advises to expect distribution once inside the 17850-950 region, followed by attempts to slip.
“Initial attempts to do so are likely to find bargain buying interest while above 18750 but expect the weakness to have at least another letdown aiming at 17650. This measured downside or consolidation should set up the environment for a directional move shortly.”
“We will wait for a break beyond 17450 before collapse theories aiming 16500 are considered again, while pushback above 17850 will increase the odds of a 18300 move shortly,” he added.
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