Is This The Start Of A Deeper Market Correction? Angel One's Amar Singh Shares His Views

Markets witnessed a steep correction today with both Nifty and Sensex tumbling sharply. Nifty ended below 24,336 with a loss of 332.25 points (1.35%), while Sensex fell to 80,684.45, down 1,064.12 points (1.30%). Except for Nifty Media, which remained flat with a marginal 0.2% gain, all other sectoral indices closed in the red. The sharp decline was led by Nifty PSU Bank (down 1.8%), followed by Nifty Metal, Nifty Oil & Gas, Auto, and Financial Services, all falling over 1.5%. Several factors are weighing on market sentiment. Investors await the US Fed's decision on rate cuts, expected on Wednesday, with most pricing in a 25 basis point cut. Weak global cues, including subdued Asian markets, are further dragging Indian indices. The rupee also hit a new all-time low of 84.92 against the dollar on December 17, adding pressure to investor sentiment. Foreign Institutional Investors (FIIs) remain net sellers, with ₹279 crore worth of equities offloaded on Monday, and similar trends expected on Tuesday. Even heavyweight stocks like Reliance Industries (RIL), HDFC Bank, L&T, Titan, and Bajaj Finance failed to lift the markets.

Amar Singh, Sr. Vice President – Research at Angel One, provides deeper insights into the correction. He says Reliance Industries has witnessed a significant correction and is approaching critical support levels in the ₹1,200-1,220 zone. HDFC Bank, a key index mover, has also seen profit booking, contributing to the decline. Banks rallied earlier, especially post the RBI CRR cut, but profit booking has triggered a pullback. Amar Singh also highlights sectoral resilience in textiles, IT, and selective metal stocks despite broad-based market weakness. From a technical perspective, Amar Singh highlights that the Nifty's recent lows around 23,200-23,300 form a strong support zone, while the upside remains capped at 24,800-25,000, acting as a resistance zone. The intermediate-term trend has weakened significantly, although the long-term trend remains upward. Amar Singh advises caution and says that any pullback may be short-lived, presenting opportunities for profit booking at higher levels. The market is now waiting for US Fed decisions and its impact on global flows, the dollar, and FIIs. Other concerns include corporate earnings slowdown, mutual fund flows, and global uncertainties.

Join us as we break down today’s market crash, the key triggers behind the sell-off, and whether the correction could deepen further. Tune in for expert analysis, technical perspectives, and actionable insights to help you navigate these volatile times.