Stock market today: After a stellar rally on Monday, the Indian stock market witnessed sharp selling in early morning deals on Tuesday. The Nifty 50 index lost around 700 points and touched an intraday low of 22,566, whereas the BSE Sensex lost over 2000 points and touched an intraday low of 74,234. Likewise, the Bank Nifty index lost over 1500 points and touched an intraday low of 49,409. The market has turned red as the Lok Sabha Elections, a significant political event in India, are not in sync with the Exit Polls. They said that early trends of the Lok Sabha Election results are disappointing for the stock market investors and this fall in the Indian stock market is mainly due to this surprising Lok Sabha Election results.
Early trends in Lok Sabha Election results
Pointing to disappointing Lok Sabha Election 2024 results, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “This sharp fall in the Indian stock market is mainly due to the disappointing early trends in the Lok Sabha Election results. This trend is definitely not in sync with the Exit Poll. This has put some panic in the market.”
However, Avinash Gorakshkar maintained that these are early trends and the picture will be more clear in the next one to two hours. He advised investors to maintain a ‘strict stop loss ‘, a risk management strategy where a stock is automatically sold if it drops to a specific price in such a volatile market.
India VIX Index hits 52-week high
Expecting the volatility to continue, Sumeet Bagadia, Executive Director at Choice Broking, said, “The India VIX Index has risen around 20 percent as the volatility index of the Indian stock market today touched a new 52-week peak of 26.32 in the early morning session. The index has retraced from the intraday high, but the India VIX today has made a new base at 23. So, we may see more volatility in the Indian stock market in the near term.”
Bagadia said that the Nifty today has support placed at 22,400 and 22,100 mark, the BSE Sensex has immediate support placed at 48,500 and 48,200, and the Bank Nifty today has support placed at 73,700 and 73,000 mark.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 04 Jun 2024, 09:56 AM IST
