The markets tanked heavily in trades last week, with key benchmark indices, the Sensex and the Nifty, logging losses of over 3.5 per cent each.
In the process, with just two trading sessions remaining the benchmark indices seem poised to log their first monthly loss in eight months this November.
The markets were already on a weak footing following persistent FII selling, high crude oil prices and fears of a possible change in interest rate scenario. They suffered another severe jolt on Friday as reports of a new heavily mutated Covid-19 variant originating from the African nation Botswana came in.
“If Nifty stays above 17,350 in the near term and 17,100 in the coming sessions, the Index shouldn’t see a serious drawdown. In case of any breakdown, the intensity of the fall can take the Nifty to 16,400 in a short span of time,” said Abhilash Pagaria of Edelweiss Securities.
Echoing similar views, Avdhut Bagkar of Business Standard says that the current scenario demands investors be cautious.
While crude oil prices are going to be volatile in the near-term and severity of the new Covid-variant is yet to be determined, the market seems to have taken its precaution. Let’s wait-and-watch how it plays out over the next few days.
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