Nifty 50 from last few months are in downtrend. Nifty 50 fall from its peak at 17000 make or break level. Nifty 50 told us about how large cap stocks perform in india.
In one week after SVB financial collapse nifty 50 gave negative 5 percent returns. Nifty 50 gave 0 percent returns in last one year due to many reasons like crude prices russia ukraine war and SVB and Signature bank collapse.
Why Silicon Valley Bank Collapse ?
SVB means silicon valley Bank of America, the bank’s business focused heavily on US technology startups. During the COVID-19 pandemic, the lender saw a surge in deposits as tech companies profited from providing entertainment and delivery services to people confined to their homes.
Everone uses interest more in covid pandemic. SVB invested much of this cash in US government bonds traditionally one of the safest types of investment.
SVB’s troubles began when the US Federal Reserve started raising interest rates last year in response to soaring inflation, causing the value of those bonds to fall. Due to recession in tech sector and heavy inflation us government increases interest rates.
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As economic conditions for the tech sector became more straitened following the pandemic boom, many of SVB’s customers began to draw on their funds to keep above water. Short on cash, SVB was forced to sell its bonds at big losses, prompting concerns about its financial health.
Nifty 50 Bullish or Bearish ?
Currently nifty 50 from last 2 days break 17000 levels but sustain 17,000 levels also. Nifty 50 make low of 16,883 on 16 march but again go higher and closes at 16985 levels.
This shows bullishness of nifty 50 bulls are slightly active as compared to bears. Conditions are negative but if nifty 50 are able to sustain 17,000 then trend will change and nifty 50 goes into bullish movement.
The sustainability of the Nifty 50 at the 17000 level will depend on various factors such as global economic conditions, government policies, corporate earnings, and investor sentiment. These factors can have both positive and negative impacts on the stock market.
If the Indian economy performs well and corporate earnings continue to grow, it could lead to an increase in investor confidence and the sustained growth of the Nifty 50 at the 17000 level or higher.
On the other hand, global economic factors such as the COVID-19 pandemic, political instability, and changes in interest rates could negatively impact the stock market, causing the Nifty 50 to fall below the 17000 level.
It is important to note that stock market performance is subject to volatility and fluctuations, and investors should carefully evaluate their investment decisions based on their risk tolerance and financial goals.
Those who invest in mutual funds they can continue their investments. Stock market investors also buy at this levels. Traders should trade at their own risk management.