Where is NIFTY headed: Bear territory ? Or It’s just correction?

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Photo by Pedro Figueras on Pexels.com
Photo by Pedro Figueras on Pexels.com

Last week NIFTY dropped nearly 3.7 % .Global markets have witnessed drastic correction over the week on fear of impact of Corona virus.The Dow and S&P 500 each dropped 12% and 11% for the week, respectively. Its worst weekly performance since subprime crisis.

NIFTY had fallen 3.7% i.e 431.55 points in week. NIFTY is currently trading below 50,100 and 200 day SMA. It saw sharp gap down opening on Friday on poor global clues.NIFTY is expected to form support around 11075-11110 and next immediate support is around 10700-10750.In short term market is expected to trade in range with negative bias.

India’s economy is also not showing any encouraging signs with GP growth at 4.7% for Oct-Dec 2019 quarter.

Out of 50 stocks in Index NIFTY, 18 are trading near 52 week low (within0-7% range) , while only 4 are trading near 52 week high. Metal and Auto stocks saw drastic correction, especially Vedanta ( l3.56 %), TATA Motors ( 10.74%) are badly affected.

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