Temporary market relief like desperate bulls likely to protect significant support levels. Stock market news

According to market analysts, the corrective phase of India’s stock markets is expected to continue, but a short -term boom is possible to defend strong support of 22,800 points on Monday with Bulls on Monday.

The benchmark Nifty 50 index recovered the global tariff stress behind by foreign institutional investors (FII), despite the tireless sales from that level twice in recent times and increases the yield of US bonds.

On Monday, Bears initially pushed the bulls by dissolving a level of 22,800, leaving the Nifty down 50 to 22,725.45 points. Bulls worked hard to recover that level, finally succeeded after three intraday efforts. The Nifty 50 ended at 22,959.5 on Monday, at tenth place of one percent, between instability and the sale of FII.

The yield of the US benchmark increased by 3.7% in mid -September to over 4.5% on the possibility of inflation, which is between US President Donald Trump’s increased tariffs on all imports in that country. It has increased the outflow of more than $ 21 billion from India since October, which has fallen by 3.7% to US $ 86.88 on Monday at the end of September.

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Fear Gauge India Vicks jumped up to 16.31 as a 9% intraday, reflecting the bitter battle between the bull and the beer. Volatility decreased in the last hour of trade, but still turned off 4.71% at 15.72.

Research analyst of analytics firm indicharts J Vora said, “There is a chance of bouncing, but 22,800 can become a very strong floor if the 40-day exponential moving average is decisively dissolved,” analytics firm Indiacharts Research analyst J Vora said.

Sahj Agarwal, senior vice -president of Derivatives Research in Kotak Securities, has been limited below 22,800 levels, which he said “a psychologist had become a technical level”.

A temporary bounce

One of the signs of a temporary bounce was an increase in the put-coal ratio (PCR) of the Nifty options on Monday. The end of the weekly Nifty option of February 20 increased from 0.64 to PCR 0.81 on Friday.

This means that the ‘call’ relative to the ‘call’ sold on Friday, was sold in the call ‘call’ call ‘from the call’ call ‘per 100 Nifty calls.

A ‘put’ is a financial contract that empowers a owner to sell an underlying stock at a fixed price within a specified time, while a ‘call’ gives the owner the right to buy a built -in stock. The seller of ‘put’ and ‘call’ is obliged to take and give delivery.

When uncertainty increases, the number of ‘puts’ relative to the ‘call’ sold is reduced as option vendors are afraid that the market is afraid to lose heavily when it falls.

Similarly, when the investor’s spirit is excited, the ratio jumps above 1 because traders sell more ‘puts’ relative to the ‘call’ because they believe that the growing markets pockents to the premium paid by put buyers to them. Will allow to make.

This ratio is as high as 1.3-1.4, which indicates extremely more markets. The level below 0.7 indicates heavy oversold markets.

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“Generally, we can get a bounce from huge oversold conditions, but anyone’s limit is anticipated that the increase in earnings has increased recession and global tariff tantrums,” Senior Vice President and Technology in Axis Securities Research, Rajesh Palavia said. ,

Standalone income of 3,067 companies in India increased by about 14% year-on-year 3.35 trillions in the December quarter ended December. In the December-December quarter, corporate income became more than 32.16%. 2.94 trillion.

India’s underperformance

China has obtained at the cost of India, where the evaluation is elevated. The Nifty has earned an average of 22.32 times on an average since 2014, which according to Bloomberg, is more than 16.77 times for many earnings in 10 years in 10 years in 10 years.

India’s Underprops MSCI in the MSCI China Index improves MSCI India better through gross returns in a period of one month, three months and one year.

MSCI China produced a gross return of 35.16% in a year through 31 January, while MSCI India gave 5.88% returns in the same period. Recently, the disintegration by the Chinese Artificial Intelligence firm Dipsek flowed into China from other emerging markets.

Even the MSCI Emerging Market Index improved India with a gross return of 15.35%, marking India as one of the worst performing with a depreciation currency.

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China is also more attractive than India in terms of evaluation. MCSI China, according to the global index provider MSCI, traded several times against MSCI India’s 25.82 times, MSCI India’s P/E at the end of January in the context of the dollar several times in terms of 13.11 times.

Foreign investors use MSCI indices to allocate money in markets around the world.

Dark area in red color

The recent sales in India have closed the Nifty from a record high of 26,277.35 points on September 27 to 13% from 22,959.5 on Monday.

The Nifty Smallcap Index has fallen into the bear area, which declined its record high from 18,688.3 to 22.6% on 24 September to 14,468.25 on Monday.

The worst performing sectors as Monday were Nifty Realty, which was 28% below, and Nifty Oil & Gas and Nifty PSU Bank, which were 27% below each of their 52-week high.

Other underperformer Nifty Auto, Nifty FMCG, and Nifty Consumers were dupattas, which were about 20% below their respective highs, in FY 2014, in FY 2014, due to the recession in economic growth from 8.2% from 8.2% of the economic growth in the current financial year, an estimated 6.4% capital expenditure in the financial year And the decline in low consumption by homes.