Mumbai: Indian stock market witnessed a freefall on Tuesday with both the BSE Sensex and the Nifty50 closing below the psychological levels of 31,000 and 9,000, respectively.
The Sensex lost over 1,000 points by the end of the day’s trade. Weakness in the domestic indices was in line with the bear run across the global markets, after crude oil prices in the US in an unprecedented development fell below zero and turned negative.
Rahul Sharma, Research Head at Equity99 said: “It was a very nervous day for most traders today as benchmark indices broke key support levels today on concerns of a historic fall in international crude last night where US crude prices nosedived below the $0 a barrel mark for the first time ever on fears of a supply glut.”
He said that dealers and analyst now fear that the much talked about the global recession is very close which will have serious impact on the global equity markets too in the coming days.
According to Sharma, market will continue to trade in the negative zone in the next few days and the upcoming earnings reports and economic data will also keep investors cautious.
Deepak Jasani, Head of Retail Research at HDFC Securities noted that on the BSE, the top sectoral gainers were the BSE Telecom and Healthcare indices, while the major losers were the BSE Banking index, Metal, Auto and Oil and Gas indices.
Major Asian markets have closed on a negative note. European indices like the FTSE, DAX and CAC have ended lower, he said.
On the technical front, traders will need to watch if the Nifty can bounce back from the immediate supports of 8,821, Jasani said, adding that, otherwise the intermediate downtrend may continue that could take the Nifty towards the next downside targets of 8,360 - 8,055. (IANS)
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