How Will Nifty Open On Monday After Losing700 Points This Week? Is A Recovery In Sight?

How Will Nifty Open on Monday After Losing 700 Points This Week? Is a Recovery in Sight? Amar Singh, Senior Vice President - Research at Angel One, provides an in-depth analysis of the market after a challenging week, where Nifty dropped a significant 700 points. He highlights key factors driving this downtrend, particularly valuation concerns and quarterly earnings that, while not disastrous, have fallen short of investor expectations. According to him, the market was primed for a correction, spurred by subdued growth projections, rich valuations, and intense Foreign Institutional Investor (FII) selling that has intensified this month. Amar Singh points out that while initial geopolitical concerns have not deeply impacted markets and global factors aren’t the main drivers of this correction. The Nifty’s sharp falls reflect a widespread, across-the-board correction affecting large, mid, and small-cap stocks. In terms of technical support, he identifies the critical 24,000 level for Nifty and any dip below could trigger further declines towards the 23,500–23,600 zone. The market’s short-term trend remains distinctly bearish, with rallies meeting selling pressure until Nifty sustains above 24,500–24,600. He also explains that while some short-covering and buying at lower levels have kept Nifty hovering above 24,000, it’s premature to declare a bottom. With technical indicators still negative, each pullback has faced renewed selling. If Nifty manages to break above the 24,450 mark, Amar Singh anticipates a possible sharp rally to around 24,700, though selling pressure could resume at those levels. The immediate range he foresees is 24,000 to 24,600–24,700. Watch this expert breakdown for guidance on navigating market turbulence and identifying potential entry or holding points amidst high volatility.