When Ashwani Gujral predicted current stock market selloff just a few days ago

Noted stock market analyst Ashwani Gujral today passed away, according to reports. He was 52. Besides a regular market commentator on many business TV channels, he had authored many books on technical analysis: How to Make Money in Intraday Trading, How to Make Money Trading with Charts and How To Make Money Trading Derivatives: An Insider’s Guide.

On his YouTube channel, he had forecast the current leg of decline in Indian markets. On a video posted on February 22, he attributed the current correction to synchronized global selling due to higher interest rate forecast amid a global slowdown.

“Market was in a range and now there is downside expansion. There is no space offering support to Indian markets, banks, RIL or IT. In a few days, Nifty could touch 17,350 and could even below that. Bank Nifty could break even break 39,500,” he said in a video posted on February.

He advised investors to remain with the trend instead of thinking that the market will pullback. “The US market is also showing negative bias and these factors like higher interest rates and slowdown will not go away in a hurry. Markets consolidate for some time and when they expand they expand ferociously,” he said.
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Indian stock markets fell for the seventh day today with Sensex settling 175.58 points lower at 59,28. Nifty finished at 17,392 after falling to 17,300 at day’s low. Nifty IT index today sank nearly 2% today.

Wall Street fell sharply last week following data that showed the personal consumption expenditures price index, the U.S. Federal Reserve’s preferred inflation measure, accelerated in January. The data heightened fears among investors that the Fed might have to keep rates higher for longer to tackle inflation. Fed futures now have rates peaking around 5.42%, suggesting at least three more hikes from the current 4.50-4.75% band.

Indian government bond yields today also hit a 3-month high of 7.45% – an indication of nervousness in the market, according to market analysts. The market is still worried about domestic inflation numbers and global issues like the Ukraine war etc., adding to discomfort with growth projections.