Transcript
Hi all, This is Neha Vashishth and you're listening to ET Market Watch - your daily dose of Dalal Street.
As the closure of two regional US banks raised fears of contagion in the financial sector, the fear gauge index India VIX saw a sharp jump of 20.89% to 16.22 on Monday.
Meanwhile, in today's trade, India VIX has touched a high of 16.43. From its 52-week low of 10.17, it is up nearly 59%.
If you aren't aware - India VIX is a measure of the market’s expectation of volatility over the near term. The volatility index is a measure of the amount by which an underlying Index is expected to fluctuate, in the near term, based on the order book of the underlying index options.
In today's trade, Nifty 50 declined 259 points or 1.49% to 17,154, while BSE Sensex plunged 928 points or 1.57% to 58,238.
Vinod Nair, Head of Research at Geojit Financial Services, said: "The Fed’s decision in the upcoming meeting will have a crucial impact on the market sell-off, as the consensus is reversing to no rate hike trajectory. Also, the US inflation due on Tuesday will have a vital impact in the short-term as the market anticipates a cool down from January levels."
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, also said, "Nifty has been in a sharp down-trend, and the negative chart pattern like lower tops and bottoms are in store. Present weakness seems to be in line with the lower bottom formation, but there is no confirmation of any lower bottom reversal pattern yet at the lows."
According to Nagaraj Shetti - The next downside levels to be watched are around 17000-16800 in the near term. Any upside bounce from here could find strong resistance around 17300-17350 levels."
Well, that's all for today. Stay tuned to ET Markets.com for expert advice, stock market analysis and more. Enjoy your evening.