The Bharat stock market experienced a setback as last-hour selling pressure and profit booking led to a decline in the Nifty50. Losing 192 points from the day’s high, the index failed to sustain the previous day’s low of 21,800. A bearish candlestick pattern, resembling a Bearish Engulfing, emerged on the daily charts, indicating a potential downside. Experts suggest that as long as the index trades below the 21,900 mark, near-term resistance, weakness, and consolidation may persist, with support at 21,600-21,500 levels.
The Nifty50 opened higher at 21,921, reaching 21,964, but bears took control in the last hour, resulting in an 82-point loss, settling at 21,772. Shrikant Chouhan, head of equity research at Kotak Securities, emphasized the importance of staying below 21,900 for continued market weakness, potentially slipping to 21,650-21,600.
In global markets, European stocks edged higher, following Wall Street’s record close, while Asian shares fell after a robust U.S. jobs report diminished expectations of an imminent Federal Reserve interest rate cut. Japanese stocks closed higher as exporters benefited from a weaker yen. Oil prices remained tentative amid escalating geopolitical tensions in the Middle East.
The Federal Reserve’s Jerome Powell stated that the market may need to wait beyond March for a potential interest rate cut, causing Treasuries to extend Friday’s selloff. Chinese stocks experienced wild swings, and Asian shares outside Japan slid 1% at the start of the week. The U.S. job growth data signaled strength in the labor market, influencing market expectations for the Fed’s rate decisions.
U.S. crude rose to $72.43 a barrel, and Brent was at $77.58, as geopolitical tensions impacted oil supply. Spot gold dropped to $2,035.09 an ounce, influenced by economic factors and market sentiment. Traders are now pricing in just below 120 basis points of cuts this year, reflecting shifting expectations in response to economic indicators and global developments.
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