Black Monday for Indian Stocks as BSE Sensex Closes Nearly 4,000 points lower

Black Monday for Indian Stocks as BSE Sensex Closes Nearly 4,000 points lower

Indian market suffered one of the biggest falls in its history on Monday as BSE Sensex dropped 10 percent during early trade and trading was halted for 45 minutes. Once the markets opened, the slide continued and markets ended almost 4,000 points lower for BSE Sensex. US dollar went up compared to Indian currency.

Market review and outlook by Mr. Santosh Meena, Senior Analyst, TradingBells follows....

It was another black Monday for the Indian equity market as the number of cases is rising exponentially across the world as well as in India where almost Overall India is under lockdown situation. SEBI's move to curb volatility didn't work for the market as rules were applicable for both long and short positions which makes difficult new long positions while short positions caused more price damage due to lack of liquidity.

We can say that almost the worst-case scenario has been discounted by the market in today's trading session but it is difficult to say about it with confidence amid a very uncertain event of Coronavirus. If any minor relief comes in front of Coronavirus then we can expect a smart recovery in the market. Levels are meaningless in such kind of market but 7500 is one psychological level for the Nifty while 7250-6825 is the next important support zone where we can expect a probable bottom. In the upside 8500-9000 would be the first critical supply area at any pullback.