India’s benchmark Index is down 5 percent this month, will the slide continue!!
Nifty slid close to 3 percent for the week ending 10th February, extending its decline to more than 5 percent for the month on the back of a global slump in equities.
In addition to global events, domestically there are concerns that rising crude oil prices could lead to inflation spiking in the near term, larger fiscal deficit and high valuations. The last straw to the already shaky markets was however the imposition of Long- term Capital gains (LTCG) tax in the recent budget which definitely did not go down well with investors.
While analysts expect global equities to correct further and the Indian markets are no exception, technically, the Nifty looks to be holding near crucial supports at 10300. If taken out, the near- term uptrend would signal a reversal and the Index could slide all the way to 9400.
On the upside, Nifty is likely to find resistances around the 10600 levels with a close above leading to fresh buying coming in which could take the Index to 10800- 10850. In the near- term, look to trade the Index in the 10300- 10600 zone
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