Indian Stocks Witness Steep Decline after Dismal Manufacturing Data
Indian markets have witnessed strong decline during today's trading session. Market research and outlook by Epic Research. Nifty crashes on the back of dismal manufacturing growth data and negative global cues despite FM proposing banking space consolidation measures. The market was in no mood to cheer as the volatility which was muted for the last few sessions spiked up and edged 8% higher.
This is a clear breakdown we have seen from 11100 levels. This is the second time. This clearly indicates the trend is in the firm grip of the bears. There was some sharp recovery seen last week on the back of hopes of any stimulus but the market was left blooded with broader indices witnessing sharp cut of 2% to 4%. The volatility spiked up following the global counterpart indices. The VIX, Nifty, was up almost 11%. This shows the undertone is rather fearful than being cautious. So we are seeing this as an outcome of fears of a slowdown that is ringing up every other day. With today's manufacturing data it was further alarmed.
Nifty may continue to slide and we believe the lower levels can be tested. One should remain a seller or at least hedge the portfolio.