NIFTY up-trend continues
Nifty uptrend continues, at least that is what you will see in a 5 year chart:
I just wanted to remind redditters that this is still not a market fall, but is classified as market correction. Things have changed in the last 2 months since FIIs started selling to make their position in Chinese markets. Read my post here for more details.
What caused today's (04-Nov-2024) downfall?
I don't think anyone can precisely point out what caused NIFTY to shed 300+ points today, but we can always predict what "could" have caused it. We know that US elections are planned on 05-Nov-2024 and that could have resulted in some panic selling in the market as the poll results are very close for both candidates. Data from market shows the FIIs selling continues in the month of November'24 too:
04-Nov started with markets shedding about 472 points, but the buying from DIIs led to some improvement at the end. However, NIFTY closed -309 points from the days opening.
Based on technical analysis, it looks like support is coming in at 23,840 mark for Nifty50. This trend of market going down is expected to continue in the short term and Nov might not see a respite due to the uncertainties lying around the US elections.
What does this mean for Retail investors?
Expect the downfall and/or consolidation to continue in the short term. If you had spotted the fall in market early, you would have pulled out your short term investments and booked profits. But if you have long term investments in markets, you could continue to hold your positions and buy a few more at a dip sometime in the coming weeks.