BSE Sensex and Nifty 50 fell practically one per cent on Monday, on the back of weak macroeconomic information, spike in COVID situations, rise in crude oil costs and bond yields. BSE Sensex ended 398 points or .78 per cent decrease at 50,395.08, whilst the broader Nifty 50 index fell 101.45 points or .67 per cent to finish at 14,929.50. During intraday, Sensex hit a low of 49,799.07 whilst Nifty touched 14,745.85. Market breadth favored bears ar 1,832 scrips declined whilst 1,223 shares sophisticated. A total of 208 stocks remained unchanged. The broader markets outperformed the equity benchmarks. The S&P BSE MidCap index closed at 20,429 , down .72 per cent or 148 points whilst the S&P BSE SmallCap index ended at 21,096, down .53 per cent or 113,28 points. Meanwhile, India VIX, volatility index fell 2.21 per cent to finish at 21.23.
Rohit Singre, Senior Technical Analyst at LKP Securities
Index opened a day with mild gains but failed to sustain on the positive side & observed sharp slide and closed a day on a adverse note at 14929 with loss of practically one %. The index showed some pullback following touching its increasing trend line on the every day chart, going forward 14750 will be instant & sturdy help if managed to hold then some more pullback achievable towards instant hurdle zone of 15k mark followed by 15100 zone.
Vinod Nair, Head of Research at Geojit Financial Services
Weakness in national macro information and rise in worldwide bond yield ahead of the essential FED monetary policy meeting dented domestic momentum. Both the inflations of retail and wholesale, inclined larger than estimated whilst industrial production de-grew in January 2021. However, optimism in European & other Asian markets helped to recover from the sharp initial losses. We can anticipate this volatility to stabilize based on the worldwide outlook post a confirmation from FED to preserve an accommodative policy.
Binod Modi, Head Strategy at Reliance Securities
Domestic equities witnessed sharp sell-off for the second consecutive trading day as mounting issues about resurgence of Covid-19 situations in different aspect of the nation and increasing bond yields produced investors jittery. Further, unexpected contraction in IIP information for Jan’21 and sharp spike in CPI print also weighed on sentiments. A sharp enhance in US treasury yields and current spike in fresh Covid-19 situations in different components of the nation have clearly dented investors’ sentiments. Notably, outcome of Fed policy meeting will be essential for domestic markets in coming days.
While the spread of 10-Year USA treasury yields and India’s GSec Yield at 460bps and dollar index beneath 92 nonetheless offer you comfort, any sharp deterioration in these prints hereon may possibly pose a threat to the domestic market place. However, offered the sharp rise in the government’s capital expenditures for FY22E along and different reforms to stimulate investment and consumption activities, the underlying strength of domestic equities remains intact, and India is anticipated to witness a sharp financial recovery in FY22 and thereafter.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited
The market place witnessed some swift recovery from its quick-term help about the Nifty50 Index level of 14800 in the market place. the anticipated level really should variety in between 14950 and 15300, and it is going to essential for the quick-term market place situation to sustain above the 14800 to preserve the extended-term uptrend intact. While it is topic to additional price tag action evolution, it is prudent to wait for a decisive breakout above 15000 and technical components to boost ahead of going extended in the market place. The traders are advised to refrain from developing a new getting position till additional improvement is observed and a breakout above 15000. volatility is observed to expand in today’s trading session.