Market Minutes: Is the downtrend going to dominate again? What do these 2 signals seen today mean?

Profit booking was seen in the stock market today. Due to this, the major indexes closed after losing almost all the gains recorded in their beginning. Both Sensex and Nifty closed near the previous levels. After the rise that continued for some time, today's profit booking has again raised a question among investors whether the market can once again register a decline. Especially 2 signals seen from the market are increasing the concern of market watchers.

Which signals increased the tension?

The first signal for the market is the reduction of the gap between the low and the closing. In the last 6 sessions, the closing of Nifty has been at least 100 points or more above its session low. Today, for the first time in 7 sessions, this gap has been less than 100 points i.e. about 70 points. The index has recorded its lowest level today only in the last half hour. Today, the index has closed 200 points down from its upper levels. The second signal has come from stock specific action and broad market action in the market. Sensex and Nifty may have closed in the green mark, but small and medium indexes have fallen by more than one percent today. At the same time, 2258 stocks have seen a decline as compared to 674 stocks that rose. The number of stocks that suffered heavy losses has been higher. 96 stocks have reached the lowest levels of the year, while 157 stocks have hit a lower circuit. On the other hand, 30 stocks reached the highest levels of the year while 105 stocks hit an upper circuit. In such a situation, if experts are to be believed, stock specific action has increased in the market and now there are indications that the market may remain in consolidation for some time and in a range where stock specific action may increase. What is the expert's opinion According to Rupak Dey, Senior Technical Analyst of LKP Securities, a very fast recovery has been seen in the market. According to him, the market was expected to rally till the level of 23600, but the recovery in the market was so fast that the market broke this level and crossed 23800. 

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