Markets May Continue To See A Downslide Next Week

Markets may continue to fall next week as growth concerns mount in countries like China. This week the Nifty lost close to 2 and half per cent though the losses in developed markets like Europe and the US were far higher.

Carnage in the markets was seen in metal stocks and banking. Metal stocks fell sharply as worries resurfaced on growth in China.

Select banking stocks saw a huge sell-off after payment banks were announced by the authorities. Stocks like Yes Bank and State Bank saw heavy selling pressure during the week.

Oil exploration companies also saw sharp unwinding after crude oil plunged in trade. The carnage across the global markets was even worse.

The S&P 500 slipped below the 2000 points mark, while most of the markets hit muti-month lows.

Our own markets saw the Sensex hit a 2-month low. Several blue chip stocks like Tata Motors, NMDC, Cairn India, Sobha Developers, Hindalco ad Vedanta hit a fresh 52-week low.

In fact, the stocks that hit a new 52-week low is alarming.

Going ahead markets are likely to fall further next week. There are no fresh triggers for the market and unless the global rout stops, Indian markets are also likely to see some selling pressure.

It may not be a good idea to catch a falling knife and investors could wait a while for the dust to settle before taking fresh positions.

GoodReturns.in