Broader Mid and Small cap indices saw bigger falls
Satish Chandra Aluri,
Lemonn Markets Desk
Mumbai, January 13, 2025: Benchmark indices had seen sharp falls on Monday as markets extended losses on worries over earnings and continued foreign selling as INR hits record lows. Broader Mid and Small cap indices saw bigger falls.
What we are seeing is extreme pessimism going into the earnings and budget as investors are still not comfortable with the valuations, despite the recent fall, given the poor earnings outlook and weak global sentiment. Friday’s US jobs report and subsequent spike in US yields and Dollar had a double whammy impact on emerging markets with sharp foreign outflows and prospect of only one rate cut from US Fed. Globally, markets are adjusting to the prospect of even no rate cuts from US Fed, if US economic momentum remains strong.
Technically, Nifty 50 is looking very weak with prospects of a further breakdown, although RSI indicates near term conditions look oversold. Expect 23000 as key psychological support with next support around 22800. Bank Nifty also fell sharply appearing oversold in the short term with RSI falling below 30. ( Lemonn is a stock investing app)
