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Why stock market is falling today: Indian markets witnessed sharp profit booking after a one-sided rally, leading to a mild correction in benchmark indices. Zee Business Managing Editor Anil Singhvi said the sharp fall in the market is mainly due to strong profit booking after a long rally. The market had seen a one-sided surge of nearly 1,500 points on the Nifty — from 24,500 to 26,000 — and was now taking a natural breather near higher levels.

According to Singhvi, a correction of about 500 points from the top levels is normal and not a cause for concern. Weakness will only be confirmed if the Nifty falls below 25,500. Until then, the overall trend remains positive.

He advised that for day traders, risk levels will increase if the Nifty closes below 25,700 or the Bank Nifty ends below 57,400. Some volatility is expected during the monthly expiry week, he added.

Singhvi noted that the Bank Nifty had outperformed and hit life highs well before the Nifty. Therefore, a slightly deeper correction in the banking index is possible.

He emphasised that the market may look weak, but there is no reason to worry yet. “Until crucial levels are broken, this should be seen as normal profit booking rather than a sign of trend reversal,” Singhvi said.

Indian equity markets were trading in the red during the afternoon session on Thursday. At 2:30 PM, the Sensex was down 395 points or 0.47 per cent at 84,160.98, while the Nifty slipped 114 points or 0.44 per cent to 25,778.00.

The Sensex opened higher at 84,667.23, touched an intraday high of 84,707.44, but slipped to a low of 83,957.15 amid selling pressure. The Nifty also opened firm at 25,935.10 and hit a day’s high of 25,944.15 before dropping to 25,718.20

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

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