The Indian stock market is witnessing a sharp correction, with Nifty plunging for eight straight sessions, marking its worst losing streak in two years. On Friday, the index crashed to an eight-month low, leaving investors worried about what’s next. Nifty and Sensex lost 2.9% and 2.8%, respectively, this week, as weak market sentiment prevailed amid fresh tariff threats from former U.S. President Donald Trump.
This relentless sell-off has occurred only seven times in the last 12 years, raising a critical question:
Is this the start of a deeper correction, or is a market bounce imminent?
Key Technical Levels and Market Outlook
The breach of 22,500—a crucial support level—has intensified selling pressure. Analysts believe the next significant support lies at 21,600-21,700, and if this level holds, a short-term bounce is possible.
Expert Analysis
A market expert noted:
“Till last week, we were holding on to 22,500. This week, that support level has given away very easily, and we are down almost 6% for this month. This is a significant correction if we take a look at the index. Markets do not look stable in the larger time frame and could head towards 21,600-21,700 as the next support.”
Despite the bearish trend, a long-term perspective remains optimistic. The expert added:
“Even if the index corrects another 500 points, the broader outlook suggests a potential upside of 2,000-3,000 points over the next 1-2 years.”
Will Nifty’s Losing Streak End on Monday?
With eight consecutive days of losses, all eyes are on Monday’s trading session. Here are the key factors that could influence the market:
1. Global Market Trends and U.S. Tariff Uncertainty
Global market sentiment and the impact of Trump’s tariff threats will play a major role in determining Monday’s market movement. If global cues improve, Nifty could see a technical rebound.
2. Foreign Institutional Investor (FII) Activity
FIIs have been heavily selling Indian equities. If FII outflows slow down or reverse on Monday, it could support a market recovery.
3. Key Support at 21,600-21,700
Technical charts indicate that 21,600-21,700 is a critical level. If Nifty holds above this zone, a short-covering rally may take place. However, if the index breaks below it, the next downside target could be 21,400.
Short-Term vs. Long-Term Market Strategy
For Short-Term Traders:
- Expect high volatility: The market could witness sharp moves in either direction.
- Watch 21,600-21,700: Holding this level could lead to a technical bounce.
- Avoid aggressive long positions: Wait for a trend reversal before entering.
For Long-Term Investors:
- Market dips present a buying opportunity: Fundamentally strong stocks are now available at better valuations.
- Focus on sectors like banking, IT, and manufacturing for long-term gains.
- Patience is key: Despite short-term uncertainty, the market is expected to recover over the next 1-2 years.
Conclusion: What to Expect on Monday?
The stock market is at a crucial turning point. If global factors and investor sentiment improve, Nifty could see a short-term recovery. However, if selling pressure continues, the index may fall further towards 21,400.
With key support levels being tested, Monday’s opening trade will be crucial in determining whether Nifty can finally break its losing streak or sink deeper into correction territory.
What do you think? Will Nifty recover, or is more pain ahead? Share your views in the comments!
Stay Updated with Market Insights!
Subscribe to our blog for the latest stock market trends, expert analysis, and investment strategies!