Bears clutched Dalal Street on Wednesday, forcing the domestic equity market benchmark indices lower. BSE Sensex tanked 537.22 points or 0.94 per cent to settle at 56819.39, while NSE Nifty 50 lost 162 points or 0.94 per cent to finish trade at 17,038. Index heavyweights such as Bajaj Finance, ICICI Bank, Infosys, Bajaj Finserv, and State Bank of India (SBI) contributed the most to the indices’ loss. Broader markets too ended lower on Wednesday. S&P BSE Midcap index fell 0.9 per cent or 216 points to settle at 24,414, while S&P BSE Smallcap index lost 0.6 per cent or 177 points to end trading at 28,742. India VIX, the volatility index surged 7.4 per cent to settle at 20.61 levels. Bank Nifty was down 1.03 per cent.
Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities
For the short term Nifty remains in a corrective phase with resistance placed at 17315 levels. From the medium term perspective, we broadly remain positive and advice accumulating on dips. We see value in select financial and energy stocks while IT stocks are expected to trade with negative bias.
Vinod Nair, Head of Research, Geojit Financial Services
Market continued to be gripped by high volatility following a heavy selloff in the global markets led by elevated energy crisis and weak Chinese economic outlook underpinned by prospects of US rate hikes. Investors are weighing the possibility of a global slowdown due to monetary tightening by central banks, lockdown in China and Russia -Ukraine war. This has resulted in an outflow of funds from equity markets to safe havens.
Kunal Shah, Senior Technical & Derivative analyst, LKP Securities
The Bank Nifty index after a gap-down opening remained under selling pressure. The index on the daily chart has formed a Doji candle which indicates indecisiveness in the market. The index downside support stands at 35700 and a breach below this will witness further downside. The upside resistance stands at 37000 and close above this will only resume the up move.
Rupak De, Senior Technical Analyst, LKP Securities
The benchmark index Nifty has completed another day of ranged trading. The index remained below 200DMA throughout the trading session. The daily RSI is in bearish crossover and falling. Going ahead, range-bound trades may continue over the near term. support is seen at 16900/16800 whereas, on the higher end, resistance is visible at 17250.
S. Hariharan, Head- Sales Trading, Emkay Global Financial Services
As has been the trend for the last few months, the outlook for earnings in FY23 has continued to deteriorate. Incremental newsflow of restrictions on Indonesian palm oil exports would pose input cost challenges for all FMCG companies – this sector faces the highest risk of earnings downgrades in this quarter. Similarly, fuel & commodity cost pressures would also impact earnings for cement and consumer durables companies’ earnings. Thus far, the trend of Q4 earnings season has pointed to disappointments and severe stock reactions to earnings misses. Banks and commodities companies are relatively sheltered from disappointments but are also consensus over-weight positions for market participants.