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Business Desk- Share Market Crash Details: There has been a huge decline in the stock market in the last four trading sessions. By closing below the level of 23,400 on Tuesday, Nifty has indicated the possibility of further big decline. In the last four trading sessions, Nifty has fallen 1,165 points, while Sensex has lost 3,400 points, wiping out a large part of the strong 7% recovery achieved in April.

Selling pressure is increasing. Analysts say that this will not bring relief easily. The stock market now faces the constant risk of selling at every rise. Markets remain weak globally. Sounds of economic crisis are beginning to be heard.

Heavy fall in stock market on Tuesday

On Tuesday, the Nifty fell nearly 2% and slipped below the 23,400 level, while the Sensex fell 1.9%. Losses in the broader market were even greater. Nifty Midcap 100 fell 2.5% and Nifty Smallcap 100 lost 3.2%, lagging far behind the benchmark index.

Siddharth Khemka, head of research at Motilal Oswal Financial Services, said domestic equity markets are likely to remain volatile and weak unless there is any meaningful progress in talks on the West Asia conflict or there are signs of de-escalation.

He said that due to the halt in US-Iran talks, the prices of Brent crude increased to $107.4 per barrel, due to which foreign institutional investors (FIIs) continued their selling. The rupee reached a new record low of 95.62 against the US dollar.

On Tuesday itself, the currency weakened further by 40 paise and reached around 95.60 level, which further increased the concerns about rising import bill and rising inflation. Concerns are also increasing about India’s foreign exchange reserves.

Prime Minister Narendra Modi has repeatedly emphasized in recent times that the economy is under pressure due to increasing imports of crude oil, edible oil and gold. Analysts say the market is seeing these comments as a warning regarding external balance.

Huge decline in real estate and IT sector

A huge decline was seen in the IT and real estate sectors. Nifty IT index fell more than 3%. The reason for this was not only macroeconomic challenges, but also new concerns about potential disruptions from AI-based pricing.

Vinod Nair, head of research at Geojit Investments, said that the performance of IT stocks was poor. This was due to growing concerns about the pressures and potential disruptions of AI-based pricing. These fears have increased following recent initiatives by OpenAI, which aims to drive AI adoption across industries.

Which direction is Nifty going?

On the technical charts, the Nifty index is now reaching an important turning point. Ajit Mishra, Senior Vice President, Research, Religare Broking, said that after breaking out of its previous consolidation range, Nifty is now moving towards the gap support zone near the level of 23,150.

If there is a bounce in the market, the previous support level of 23,800 can act as a strong resistance point. Select investment opportunities can be found in sectors like Pharma, Healthcare, some selected FMCG stocks and Energy; However, there are also opportunities for shorting in weak sectors.

Khemka said that the increasing tension in the Middle East has increased the fear of long-term geopolitical conflict. Due to this, investors are adopting a cautious and risk-averse attitude, due to which there is selling pressure in the entire financial markets.