American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Here’s why the BSE Sensex index is nearing a correction

by admin November 21, 2024
November 21, 2024

The BSE Sensex index found support at the 200-day moving average at ₹77,578 as the sell-off in Indian stocks dropped. The index, which tracks some of the biggest companies in the country, has dropped by almost 10% below its highest level this year. It is hovering near its lowest level since June this year.

Indian stocks sell-off continue

The BSE Sensex index has erased some of the gains made earlier this year as several large companies continued retreating. 

IndusInd Bank shares have been the worst-performing in the index after falling by 37% this year. This drop happened as analysts continued to downgrade the stock. According to Makets Mojo, it has a sell rating mostly because of its weak financial results.

The other top laggard in the Index is Asian Paints, one of India’s biggest paint and coatings company. Its stock has dropped by over 27% this year as growth in the industry deteriorated. 

Nestle India’s stock has dropped by 16.5% as slowdown in the food business accelerated. Just this week, Nestle announced a big cost-cut strategy as it seeks to save at least $2 billion in funds. Titan Company, which is partly owned by Tata Group, has falen by over 12% this year. 

Still, many other companies in the BSE Sensex index have done well this year. Sun Pharma shares have jumped by over 40%, while Tech Mahindra is up by 34%. Mahindra & Mahindra, one of India’s top manufacturers, has risen by 70%, while Bharti Airtel rose by 47%.

Indian economic growth and RBI

The BSE Sensex index has dropped even as the Indian economy continued doing well. Analysts expect that India will overtake Germany and India in the next few years and become the third-biggest country by GDP after the US and China. 

Moody’s anticipates that the Indian economy will grow by 7.2% this year. Some analysts, however, see the economy slowing to 6.5% in the next calendar year. 

One of the potential risk will be the rising geopolitical issues now that Trump has pledged to implement large tariffs on all imports. This will be a notable thing since the US is one of the biggest trading partner in India. 

The Sensex has also retreated because of the hawkish tone by the Reserve Bank of India (RBI). Unlike other central banks, the RBI has maintained high interest rates and hinted that it will not cut in the near term.

Additionally, there is a sign that many retail investors who helped to push the index higher have started to take profits. The index has also fallen because of the tumbling Indian rupee, which has moved to a record low of 84.5 against the US dollar.

BSE Sensex index analysis

The daily chart shows that the BSE Sensex peaked at ₹86,018 on September 18 and has then suffered a harsh reversal, moving into a correction. It has dropped below the important support level at ₹82,765, its highest level on September 2.

The index has also fallen below the 50-day Exponential Moving Average (EMA). It has found support at the 200-day moving average, while the Relative Strength Index (RSI) and the Stochastic Oscillator have moved to the oversold levels.

Therefore, the index will likely bounce back if bulls manage to hold steady above the 200-day moving average. If this happens, the next level to watch will be at ₹82,764,

On the other hand, if the index loses the 200 EMA, there are chances that it will continue falling as sellers target the important support level at ₹70,318, the lowest swing on June 4, which is about 9% below the current level.

The post Here’s why the BSE Sensex index is nearing a correction appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Floki price prediction: golden cross forms as token burn surges
next post
Global banks consider freezing new credit to Adani following US indictment

Related Posts

Cardiex: Biomarker Technologies, Digital Solutions to Address the...

April 20, 2024

Trump Presidency: A Threat to EV Growth and...

August 30, 2024

Top crypto price forecast: Popcat, Mog Coin, Kaito,...

May 8, 2025

Mullen Automotive stock has imploded: bankruptcy risk is...

October 15, 2024

AMD stock price analysis: buy or sell this...

September 16, 2024

Crypto price predictions today: Popcat, Worldcoin, Zebec Network

May 31, 2025

FTSE 100 forecast ahead of BoE decision, BT,...

November 4, 2024

Lucid Group stock price could be on the...

May 21, 2025

SOXL ETF stock forecast ahead of Intel, AMD...

October 18, 2024

4 reasons why Ethereum price has crashed 42%...

September 13, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved