Bear Market Takes Control of Dalal Street

Quick Summary

• 86% of stocks in teh Nifty 500 index are below their 200-day moving average (DMA), signifying a long-term downtrend.
• Overseas investors have withdrawn ₹2.68 lakh crore from Indian stocks since October 1, marking meaningful foreign institutional selling.
• Of the Nifty 500 stocks, 146 are trading between 10%-20% below their average price; others vary more significantly.
• The Nifty index has dropped by 13.8%, and the broader Nifty 500 index has slumped by 16.6% since September’s end.

!Dalal Street

Indian Opinion Analysis

The marked decline in stock performance across the Nifty indices highlights persistent market pessimism influenced heavily by foreign investor actions and domestic risk aversion. With substantial investments pulled out, concerns about market stability remain high. However,contrarian analysis suggests a potential rebound if pivotal support levels hold firm or are breached positively.Caution is advised as market volatility appears set to continue without sharp policy shifts or global economic recovery indications.

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