The Bears defeated Dalal Street in the weekend session, forcing the benchmark index to decline for the fifth straight session. The S&P BSE Sensex was down 1,158 points, or 2.14%, at 52,930, while the NSE Nifty 50 Index was down 359 points, or 2.22%, at 15,808. HCL Technologies is the only Sensex stock that closed up 0.08%. IndusInd Bank was the worst performer, down 5.7%, followed by Tata Steel, Bajaj Finance, and Bajaj Finserv. The Bank Nifty is down 3.35% and the Nifty PSU Bank Index is down more than 5%. India VIX was 6.45% at 24.27.
Rupak Dey, Senior Technical Analyst at LKP Securities
“The Nifty has continued its downward trend as the benchmark index has closed sharply in red for the day. However, the Nifty has moved closer to the previous swing low on the daily chart. The market could bounce back if the Nifty could hold above its previous swing low of 15671. Failure to maintain above 15650 may result in further correction on the flip side. “
Sumit Bagadia, Executive Director, Choice Broking –
“Technically, the Nifty has made a bearish candle on a daily chart. Subsequent immediate support remains at 15650 and is followed by 15500 levels. When the resistance is set at 16050. Pricing below the major moving averages will be a concern for bulls. Indicators like RSI and MACD are in the oversold zone. So the purchase will be expected after maintaining the 16150 level. On the other hand, Bank Nifty is supported at 32500 level and after 32000 and resistance is placed at 34600 level.
Mohit Nigam, Head – PMS, Hem Securities –
“Global inflation is falling on the sentiment of traders to deal with the recession in the world economy after the US inflation data signaled more aggressive tightening by the Federal Reserve. On the global front, all Asian markets and European markets are trading lower. The release of US consumer price data overnight did little to dampen investors’ concerns about inflation and interest rates. Instant support and resistance for the Nifty is 15,600 and 16,000, respectively. Immediate support and resistance for Bank Nifty is 33,500 and 34,500, respectively. “
S. Ranganathan, Head of Research at LKP Securities –
The benchmark index fell 2.5% in afternoon trade on the back of weak global cues as investors booked profits unable to fix the oil, war, currency, inflation and interest rate puzzles. The expectation of higher CPIs in April with the margin pressure seen in the fourth-quarter earnings further intensifies the selling pressure on equities which was evident in today’s number of annual low stocks as the Sensex broke 53K with all sectoral indices. With safe-haven flows pushing the dollar index to a 20-year high, investors now seem to be pinning their hopes on resolving the conflict soon. “
Binod Nair, Head of Research at Geojit Financial Services –
“The higher-than-expected release of US CPI data yesterday suggests that inflationary pressures will continue in the near term. However, the idea is that it has reached the top and will gradually decline with the ongoing fall in crude and other commodity prices and the recession in the economy. The Fed has surprised the market by limiting liquidity, limiting further disasters in the future. We expect the market to stabilize as FII sales can reduce factoring inflation and Fed policy. “