Indian Stocks Break Critical Support As Pandemic Accelerates 

Indian shares have reversed in the last four sessions, breaking critical support, following financials, energy, healthcare, and telecommunication services pressuring the NIFTY 50 lower on Monday.

Ahead of the interest rate decision this week, investors have been souring over the prospects of rising coronavirus cases

NIFTY 50 has fallen 4% since late last week, and this comes after a 50% increase in India’s main equity index since mid-March after it plunged 38% on the eruption of the virus pandemic. 

India’s interior minister said hospitalization with COVID-19 is surging as cases soared Monday above 50,000 for the fifth consecutive day. 

India’s Ministry of Health and Family Welfare reported 52,972 new confirmed infections on Monday, pushing up the total to 1.8 million, just behind the US and Brazil. 

With 771 new deaths, the virus pandemic has killed 38,135 people in the country, including that of a minister on Sunday.

Zee Business financial analyst Anil Singhvi warned NIFTY 50 downside could be seen if the ₹11,000-level support is violated. The index closed ₹10,891, indicating further downside is ahead. 

Singhvi said investors should sell stocks if NIFTY 50 trends below ₹11,000. After the correction, he believes stocks could zoom higher. 

“11000 most important level … Anil Singhvi said – do not be afraid of a few digit correction after the boom … If the market trades below 11000-10950, neutralize the position of the bull, said – for a big boom beyond 11300 Stay ready,” tweeted Zee Business (translated into English). 

Perhaps waning Indian stocks is a warning sign for the MSCI World Index.   

Earlier on Monday, Spanish stocks broke critical support after new rounds of lockdowns feared. 

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