NIFTY CRASH REASONS Based on Astro and Gann Cycle

By | February 27, 2021 6:17 pm

Both the benchmark indices BSE Sensex and NSE Nifty witnessed a nearly 3 per cent crash, Nifty down 500 points SENSEX down 2000 points,biggest fall in last 11 Months we have seen.

US Bond Yield Rising 

US 10-year yield climbed to 1.614 per cent, the highest in a year. With the Pandemic showing signs of abating people will spend more in the US and this could cause inflation there, Concerns over inflation in the US is the reason behind rising of bond yields. The bond market is expecting the likely rise in inflation to push the US Federal Reserve to either lower monthly bond-buying or hike interest rates, an adverse factor for markets like India, which have been a major recipient of foreign inflows of late. This is despite the US Fed’s reassurance of keeping the low cost of money intact. The rising crude oil prices are also raising concern among the investors.

The benchmark 10-year bond in India also rose to 6.22 per cent, up four basis points.

Covid fears following new virus strain: 

UK government announced a lockdown in various parts of the country, including London, saying that more than half of all new Covid-19 cases had been caused by a mutated, more infectious coronavirus strain. The new virus strain is said to be 70 per cent more transmissible. Following this, a number of countries, including India, imposed travel bans ahead of the Christmas and New Year holiday season.

Market participants are concerned that this new strain of the virus and consequent lockdowns and travel bans could hamper the pace of economic recovery.

Reason can also be Attributed to Gann and Astro Cycle as discussed in below video. 

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