Bears dragged Indian equity markets in red in a highly volatile session on weekly Index expiry day as uncertainty continued around the Ukraine-Russia scenario. Sensex ended 104 points lower at 57,892, while Nifty 50 held 17300 to settle at 17,304, down 17.60 points.
Bears dragged Indian equity markets in red in a highly volatile session on weekly Index expiry day as uncertainty continued around the Ukraine-Russia scenario. Sensex ended 104 points lower at 57,892, while Nifty 50 held 17300 to settle at 17,304, down 17.60 points. Broader market underperformed and closed with a loss of 1%. Except for FMCG and Oil & Gas, all other sectors ended in red, with Nifty Bank being top laggard, down 1%. India VIX rose 6.9% at 22 levels. ICICI Bank, Axis Bank, UltraTech Cement, IndusInd Bank and UPL were the top Nifty losers, while gainers included Tata Consumer Products, ONGC, HDFC, Reliance Industries and HDFC Life.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd
“Equity markets have seen rise in volatility in the last couple of days due to varying news flows coming in from Ukraine border. Nifty has been trading in a broader range of 16,800-17,400 and needs a decisive breakout on either side for clear direction. For now, investors will have to navigate their way through the Ukraine crisis and rate hike environment to stay on course.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“The short term trend of Nifty continues to be choppy with high volatility and the similar movement is expected in the next session. A sustainable move only above 17650 levels is expected to bring bulls back into action. Immediate support is placed at 17150 levels.”
Palak Kothari, Research Associate, Choice Broking
“On the technical front, the index has been trading with lower highs & lower lows which points out a weakness for an upcoming session. Furthermore, the index has traded below the middle band of Bollinger which suggests downside movement in the counter. On a daily chart, the index has been trading below 21*50-DMA with the negative crossover which suggests weakness for the next session. Moreover, the daily momentum indicator Stochastic & MACD were also trading with a negative crossover which adds weakness in prices. At present, the index has support at 17130 levels breaching below the same can show further downside till 17000-16800 levels while resistance comes at 17500 levels. On the other hand, Bank nifty has support at 36800 levels while resistance at 38500 levels.”
Mohit Nigam, Head – PMS, Hem Securities
“Benchmark indices logged losses for the second consecutive session, dragged by banks, consumer durable and oil & gas stocks with Sensex down 104.67 points or 0.18% at 57,892 and the Nifty shedding 17.60 points or 0.10% at 17,304.6. This is due to following a decline in US Futures and rise in crude prices to back above $94 per barrel. Also due to uncertainties between Russia and Ukraine, domestic equities struggled to maintain stability. US futures declined following the release of the FOMC meeting minutes, where the Fed officials outlined plans for an interest rate hike and said that the unwind of the bond portfolio could be aggressive. Continued selling by FII in the domestic market can increase cautiousness in investors in near future. Crucial support for Nifty 50 is 17,100 while Nifty may face some resistance at 17,550.”
Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities
“Today, the Indian market settled flat in volatile trade. Investors’ sentiments remained cautious due to the mixed global cues. We believe volatility is likely to stay for some more time before we conclude in a concrete direction, as Geopolitical tension and other macro-economic developments lead to volatility in all major asset classes, including equity, debt, and currency. We believe this increase in volatility should be used by investors to build positions in quality large-cap and midcap stocks, as the earning expectations for Indian corporates remain strong.”
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