IGI Logo

Below is the Daily Market Analysis 26 November 2021 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets plunged sharply on global COVID fears and lost nearly 3%. The bears were in control from the beginning as a new variant of COVID raised concerns globally and they further tightened their grip as the session progressed. Selling pressure was widespread and all sectors barring pharma ended with deep cuts. The broader indices also witnessed a similar trend and lost nearly 3% each.

Though the COVID is not new to the market, the reaction is largely in response to the news of a different variant while the US and Europe are already struggling. The way markets have closed on Friday, we expect more pain in the coming sessions. Apart from the global COVID-related update, markets will also be eyeing the domestic data like auto sales, GDP numbers, etc for cues. Since Nifty has slipped below the critical support zone of 17,150, the next crucial support comes at 16,700. Traders should continue with the bearish bias and use the bounce to create shorts. Investors, on the other hand, should see this as an opportunity and start accumulating quality stocks in a staggered manner. 

Above views are of the author and not of the website kindly read disclaimer