Boold bath in Indian Stock Market today...
[Sorry about mis-spelling Blood in the heading]
Indian Stock index has been in a downtrend since Sep'24 and it has not stopped yet. NIFTY has broken the low of Nov'24 (23,370) to close at 23.024 today. The NIFTY heatmap has been bleeding RED today:
Indian Stock heatmap of 21-Jan-2025
Yesterday Zomato stocks tanked yesterday after poor profit growth and gleaming outlook for upcoming quarter:
Zomato stock taking a nosedive
The zomato selling continued today and its poor results dragged it's competitor Swiggy down along with it. You will see this trend of some of the recent announcements that include stocks like Dixon Tech, Kalyan Jwellers, MCX, Netweb and all despite not so poor results for Q3.
So what is going on with NIFTY?
NIFTY still remains in its 5Y channel, see the Turquoise channel below:
But a closer look shows that current level of NIFTY is at the bottom of this channel and it could break this channel if it goes below 22,800. There is a new (Yellow) channel forming since Sep'24 and NIFTY is currently at the centre of it:
Downward channel since Sep-2024
As NIFTY is staying close to the the centre of the yellow channel, it is unlikely for NIFTY to get out of yellow channel and join the Turquoise channel this month and probably till Feb. With FII furious selling since Oct'24, what what can turn things around is better results from corporates in Q3 and Q4 for this FY.
Although DIIs have been buying an equal amount of stocks, I will count us lucky if we get out of the descending Yellow-channel in February, unless Budget casts a magic spell.
At the moment, the Union budget could be the Hero or Villain of this market. Till then, expected a downward trend…