Stocks

Nifty may tumble 175 points at open as bears give hard look

KS Badri Narayanan Chennai | Updated on November 26, 2021

Rising Covid cases across nations, Fed's tightening comments to weaken market further

Domestic stock markets are likely to begin the fresh F&O series on negative note on Friday. As foreign portfolio investors seemed to be unrelenting in their selling, domestic markets are likely to continue in a downward spiral, said analysts. Besides, cues from Asian markets are also in deep negative, as the US Federal Reserve has indicated that it was ready to raise interest rates sooner than expected.

According to analysts, the biggest fear is rising Covid situation across the Europe and some Asian countries. The Czech government has declared the new state of emergency from November 26 for 30 days, until December 26.

Traders also rolled over more short positions to the December derivative series. According to them, Nifty rollovers stood at over 80 per cent, which is in line with the three-month average.

NIkkei plunges 717 points

SGX Nifty at 17,414 indicates that Nifty may see a gap down opening of 175 points, as Nifty December futures closed at 17,589.

Asian markets are in a sea of red, with Japan's Nikkei tumbling over 2.4 per cent or 717 points; markets across Asia-Pacific such as Australia, Korea, Taiwan, China and Hong Kong are down between 0.5 and 1.5 per cent.

According to Vinod Nair, Head Of Research at Geojit Financial Services, concerns over rising inflation were visible in the minutes of the recent FOMC meeting signalling higher chances of an aggressive policy tightening.

As per exchange data, FPIs have so far sold shares worth ₹25,338.63 crore while DIIs bought ₹18,304 crore. On Friday, FPIs sold shares worth ₹2,300 crore.

Published on November 26, 2021

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