BSE Sensex and Nifty 50 ended close to day’s lows on Monday, following weak international cues. BSE Sensex fell 470 points or .96 per cent to 48,564. when the broader Nifty 50 index plunged 152 points or 1.06 per cent to finish at 14,281. Reliance Industries Ltd (RIL) shares have been the major performers and jumped 2.37 per cent to finish at Rs 1,983.50 apiece. Titan Company, HDFC Bank and ITC have been other Sensex gainers. On the flip side, ONGC shares tumbled more than 4.5 per cent followed by losses in Sun Pharma, IndusInd Bank and Power Grid Corporation of India. Market breadth favoured bears as 2,089 stocks declined when 939 scrips rose. The Nifty Metal index plunged more than 4 per cent. European equity markets struggled for path today as robust financial information from China competed with issues more than a double-dip recession in the UK and the eurozone.
S Ranganathan, Head of Research at LKP Securities
“Markets traded weak for the most part of the day and closed in the red as fears of price cuts led to profit booking in metal stocks in the wake of rising coking coal prices. Afternoon trade witnessed selling in Oil & Gas stocks too causing the market breadth to deteriorate”
Binod Modi, Head Strategy at Reliance Securities
Domestic equities witnessed pullback for second consecutive day as weak international cues continued to weigh on investors’ sentiments. Barring FMCG, most of the essential sectoral indices witnessed sharp correction and volatility index soared more than 5% today ahead of recovering from major. A sharp rebound in RIL along with purchasing interest in HDFC Bank following robust 3Q numbers provided assistance to benchmark Nifty index. While underlying strength of markets remains intact thinking of rebound in essential financial information, sustained development in corporate earnings in 3QFY21 with upbeat managements’ commentaries and commencement of vaccination approach. Additionally, favourable monetary policies of international central bankers, weak dollar and big fiscal stimulus in the USA are anticipated to guarantee sustain FPIs flow in domestic equities. Further, as union price range is just two weeks away, rotational trading may possibly be visible in the marketplace.
Ashis Biswas, head of Technical study at CapitalVia Global Research Limited
“The market has got choppy ahead of the upcoming union budget and due to weakness in an expensive global market. A good part of the economic gains is well factored in by the upside of the last 11 weeks. A short-term correction was being anticipated for some time, it will be welcome for the market on a long-term basis”.
Vinod Nair, Head of Research at Geojit Financial Services
“The market has got choppy ahead of the upcoming union budget and due to weakness in an expensive global market. A good part of the economic gains is well factored in by the upside of the last 11 weeks. A short-term correction was being anticipated for some time, it will be welcome for the market on a long-term basis”.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
We have broken the essential assistance of 14350 and ought to ideally be headed additional south to levels closer to 14150 and then 14000. Markets have turn into volatile and strict stops have to be placed on all trades. 14500 has turn into a resistance zone and any rally up can be utilized to quick the Nifty for reduced targets.