News

Published: Jan 26, 2023
Updated: Jan 26, 2023

Market Tumbles on Monthly Derivative Expiry Day: Sensex, Nifty, and Bank Nifty Plunge

Major bloodbath on Dalal Street

Indian stock markets faced a major setback on the monthly derivative expiry day, with the Sensex tumbling over 800 points, Nifty falling over 1% and Bank Nifty tanking 2%.

Market Overview:

The Indian stock markets tumbled on the monthly derivative expiry day with the Sensex falling over 800 points and Bank Nifty tumbling 2.3%. The Nifty also came dangerously close to breaching its key support level of 17800. The Nifty's volatility index climbed as much as 10%.

Adani Group Stocks Fall on Fraud Allegations:

Stocks of Adani group companies fell between 2% and 5% after a report from a short-seller said it holds short positions in those firms through US-traded bonds and non-Indian-traded derivative instruments.

Profit-Booking Anticipated:

According to market analysts, Indian stocks were unable to break its immediate hurdle placed at 18,200 to 18,250 levels and hence profit-booking was anticipated today due to January series expiry. Today, the market has fallen because traders and investors are squaring off their positions.

Support Zone:

However, Nifty has managed to sustain above its strong support zone placed at 17,770 to 17,800 zone and this should be taken as a crucial zone ahead of the Union Budget 2023.

Volatility Ahead:

Experts say that Nifty is still in the 17,800 to 18,200 range and a breakout on either side could give a direction to the market. Traders and investors are advised to keep a focus on the pivot levels and maintain strict stop-loss in the current market scenario. The market is expected to remain volatile till the Union Budget.