Japan’s recent interest rate increase led to market pullbacks from international investors. The unwinding of leveraged trades added volatility to US and emerging markets. Concerns about US unemployment and inflation pressures prompted these moves, despite strong corporate balance sheets and liquidity levels remaining stable.
Dharmesh Shah sees strong support at 25,500–25,700; expects Nifty to rebound towards 26,100 soon
Indian markets saw pressure with Nifty dipping below key support. Analysts believe this is a healthy correction within a bull trend. Nifty is expected to