Downside Ahead! Nifty May Re-Test October Lows by March, Says IndiaChart's Rohit Srivastava

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The Indian stock market may face turbulent times ahead, with the Nifty potentially re-testing its October lows by March 2024, according to Rohit Srivastava, Founder of IndiaCharts. Srivastava highlighted the possibility of a market correction driven by macroeconomic pressures and global uncertainties, urging investors to remain cautious in the coming months.



Speaking on market trends, Srivastava emphasized that while the Nifty has shown resilience in recent weeks, the broader market sentiment could weaken due to inflationary pressures, rising interest rates, and geopolitical tensions. “We are observing critical technical indicators that suggest the Nifty may not hold its current levels. A re-test of the October lows is a plausible scenario,” he stated.

Key Factors Behind the Prediction

  1. Rising Interest Rates: The global trend of increasing interest rates, especially in the United States, could impact liquidity in emerging markets like India.
  2. Earnings Pressure: Corporate earnings growth may face headwinds as companies grapple with higher input costs and sluggish demand.
  3. Global Market Volatility: Geopolitical events and concerns about economic slowdowns in major economies could weigh heavily on investor sentiment.

October Lows: A Key Level to Watch

The October lows marked a significant support level for the Nifty, providing a base for its subsequent recovery. However, a re-test could imply heightened volatility and potential losses for investors who entered the market during recent highs.

Investor Strategy

Srivastava advises investors to adopt a defensive approach, focusing on sectors like FMCG, pharmaceuticals, and utilities, which are generally more resilient during downturns. He also recommends reducing exposure to high-beta stocks and speculative trades.

With the financial year-end nearing, market participants will closely monitor economic data, global cues, and Reserve Bank of India’s monetary policy decisions to gauge the road ahead. As always, prudence and diversification remain the key to navigating uncertain markets.

Disclaimer: This article is for informational purposes only and should not be considered financial advice.

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