Nifty may test 17,000 levels as SVB implosion stirs the ghosts of 2008

Selling pressure seen in banking, IT, and new-age stocks; foreign investors expected to be cautious

Seeing that the rapid unravelling of Silicon Valley Bank (SVB) is eerily reminiscent of Bear Stearns’ 2008 implosion, domestic markets are likely to tread lower over the next few sessions. Experts don’t rule out a fall in the National Stock Exchange Nifty50 Index to 17,200 and then to 17,000 levels in the near term.

After dropping a per cent each in the previous two trading sessions, the Nifty closed below its 200-day moving average at 17,413.

The 200-day moving average is a long-term trend indicator. Usually, a fall below the indicator is bearish and a rise above it, bullish. The