The stock market is experiencing turbulence, with the Nifty 50 index falling below its key support level of 20,050 on Thursday. This led to a significant drop, hitting an intraday low of 24,755 and causing the index to lose 375 points in just three sessions. Meanwhile, the BSE Sensex also dropped over 1,000 points, reaching an intraday low of 80,959.
What Experts Say About the Market Decline According to experts, institutional investors are waiting for more significant corrections, as foreign investors (FIIs) are selling at higher levels. With upcoming events like the US presidential elections and the Maharashtra Assembly elections, the market may continue to be volatile. However, the Nifty 50 is expected to find some support around the 24,700 mark, and we may see small recovery rallies.
If the index breaks below the 24,700 level, experts warn it could further drop to the 24,300-24,350 range.
What Should Investors Do? Mahesh M. Ojha, a research expert at Hensex Securities, mentions that the stock market is in a wait-and-see mode, with institutional investors holding off on major moves until election results are out. He expects short-term relief rallies but advises caution until the Nifty 50 stabilizes above 25,200 or dips further to around 24,400.
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, also recommends avoiding bottom fishing (buying during the market decline) at this time, suggesting that investors should only consider buying if the market shows signs of strength.
Stocks to Watch For those looking for opportunities, experts suggest focusing on the metal and IT sectors. Specifically, Vedanta and National Aluminium Company (NALCO) in metals, and Infosys and Persistent Systems in IT, are seen as strong picks for when the market stabilizes.
