In the past couple of days, Indian markets have shown a major correction.
The Nifty Bank Index corrected more than 6% while the Nifty50 Index came down by more than 3%.
The main reason for this correction is the research report published by Hindenburg Research (A US based investment research firm) which suggested that Adani stocks may crash upto 85% crash purely based on fundamentals and also highlighted some major irregularities in the business and accused them of pulling 'The Largest Con in Corporate History'. The research firm has opened short positions in Adani securities in the international markets.
This may also disturb the upcoming Adani FPO.
All the companies that fall under the Adani group have shown a major crash with huge today:
1.Adani Enterprises: -18.52% today i.e: -627.50
2.Adani Green : -20% (lower circuit hit) i.e: -371.55
3.Adani Ports : -16.29 i.e: -116.20
4.Adani Transmission: -20% (Lower circuit hit) i.e: -503.55
5.Adani Power : -5% i.e: -13.05
6.Adani total Gas L: -20% i.e: -732
7.Adani Wilmar L : -5% i.e: -27.20
Gautam Adani, the chairman of Adani group lost more than $20B of wealth in a single day according to Forbes.
Thus, going to the 7th rank from the 3rd in the richest people in the world list.
This report also highlighted the amount of debt on the Adani group, this created a fear of banks defaulting the loans and major banks like HDFC Bank fell almost 2% and SBIN who is also the biggest money lender of Adani group corrected by 5%. This in turn dragged the Nifty Bank Index down.
For the next few days, it is best to avoid trading Banknifty as it is going to be very volatile in the coming days and technical analysis won't be reliable in this type of news driven market and day traders should prefer trading Nifty.
However, option premiums will be very expensive due to the IV spike in the market.
The closest buying zone for Banknifty is above 40820 only if it sustains above it for minimum 20 minutes.
The aggresive buying zones are 41500 and above.
Stocks in the IT sector and Reliance need to show strength to bring nifty up.
Investors should be ready for a few more bearish days. The market may show signs of reversal after the Union Budget if there is some positive news in it which will be revealed on the 1st of February 2023.
Disclaimer: Not investment or trading advice
The Nifty Bank Index corrected more than 6% while the Nifty50 Index came down by more than 3%.
The main reason for this correction is the research report published by Hindenburg Research (A US based investment research firm) which suggested that Adani stocks may crash upto 85% crash purely based on fundamentals and also highlighted some major irregularities in the business and accused them of pulling 'The Largest Con in Corporate History'. The research firm has opened short positions in Adani securities in the international markets.
This may also disturb the upcoming Adani FPO.
All the companies that fall under the Adani group have shown a major crash with huge today:
1.Adani Enterprises: -18.52% today i.e: -627.50
2.Adani Green : -20% (lower circuit hit) i.e: -371.55
3.Adani Ports : -16.29 i.e: -116.20
4.Adani Transmission: -20% (Lower circuit hit) i.e: -503.55
5.Adani Power : -5% i.e: -13.05
6.Adani total Gas L: -20% i.e: -732
7.Adani Wilmar L : -5% i.e: -27.20
Gautam Adani, the chairman of Adani group lost more than $20B of wealth in a single day according to Forbes.
Thus, going to the 7th rank from the 3rd in the richest people in the world list.
This report also highlighted the amount of debt on the Adani group, this created a fear of banks defaulting the loans and major banks like HDFC Bank fell almost 2% and SBIN who is also the biggest money lender of Adani group corrected by 5%. This in turn dragged the Nifty Bank Index down.
For the next few days, it is best to avoid trading Banknifty as it is going to be very volatile in the coming days and technical analysis won't be reliable in this type of news driven market and day traders should prefer trading Nifty.
However, option premiums will be very expensive due to the IV spike in the market.
The closest buying zone for Banknifty is above 40820 only if it sustains above it for minimum 20 minutes.
The aggresive buying zones are 41500 and above.
Stocks in the IT sector and Reliance need to show strength to bring nifty up.
Investors should be ready for a few more bearish days. The market may show signs of reversal after the Union Budget if there is some positive news in it which will be revealed on the 1st of February 2023.
Disclaimer: Not investment or trading advice