Market starts the week in red, here are the 4 factors roiling sentiment

Stock Market Today:

The Indian market was down around a percent on March 21, which experts said was largely along expected lines following a 4 percent rally in the week gone by.

At close, the Sensex was at 57,292, down 571 points, or 0.99 percent, while the Nifty fell by 169, or 0.98 percent, at 17,118.

Here are four factors pulling the market down:

1 Russia-Ukraine War

Russian forces continue to advance on Kyiv, the capital of Ukraine, and were aggressively shelling cities in the face of strong resistance from Ukrainians and their military force, indicating the war was unlikely to end soon. The peace talks between the two sides have made little headway.

Moscow seems to have failed to meet its objectives to invade Ukraine within a short span of time and has stepped up the offensive, killing hundreds of people and destroying infrastructure.

Click Here To Read All Live Updates on Ukraine-Russia War

A Reuters report said Colonel-General Mikhail Mizintsev, the director of the Russian National Center for Defense Management, asked Ukrainian forces to lay down arms in the eastern port city of Mariupol.

"All who lay down their arms are guaranteed safe passage out of Mariupol," he said, a demand rejected by Ukraine.

Countries continue to announce sanctions against Russia, with the Australian government on March 20 deciding to ban exports of alumina and aluminum ores to Moscow, CNBC reported.

2 Global cues

Asian markets traded mixed, as participants closely monitored the Ukraine-Russia war. Hong Kong's Hang Seng and South Korea's Kospi were down 0.89 percent and 0.77 percent respectively, while Japan's Nikkei gained 0.65 percent.

European markets also traded mixed with France's CAC and Britain's FTSE rising a third of a percent higher, while Germany's DAX was moderately lower.

3 Oil prices

Crude oil prices gained strength again due to fear of tight supply after talks between Ukraine and Russia officials failed to make progress. Hopes of China’s Covid situation being less fearful than expected also supported prices.

International benchmark Brent crude futures have remained volatile since after seeing a correction of around 20-odd percent from March highs. Brent was trading at $112.3 a barrel, up 4 percent over March 19 close.

The volatility in prices and oil above $100 is a risk for importers, including India.

In India, the price of diesel for bulk-users has been hiked by about Rs 25 a litre in line with a near 40 percent rise in international oil prices. Retail rates at petrol pumps remain unchanged.

Also read: Bulk users throng retail outlets for diesel cheaper by Rs 25 a litre, says RIL

4 Sectoral play

Major selling pressure was seen in banking & financials, FMCG and IT stocks, partly due to profit booking as these stocks have rallied sharply in previous weeks.

The Nifty Bank, financial services and FMCG indices declined a percent each, while IT index was down seven-tenth of a percent.

However, metal bucked the trend, rising 1.5 percent.

Technical View

The Nifty formed a bearish candle as the trading price was lower than the opening levels.

Experts said consolidation can be seen in the near term, given the sharp rally in previous sessions but as long as the index holds the crucial 17,000-mark, traders should not get worried about the current fall.

On the flipside, 17,500 could act as a near-term resistance followed by 17,800, experts said.

“Now with last Thursday's spectacular move, bulls have conquered the sturdy wall of 16,800 – 17,000, which now should act as an immediate support for the index," says Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One.

On the flipside, "17,500 followed by 17,650 are the next levels to watch out for", he said

The index, however, may not move as swiftly as in did in the last five-six sessions. Some consolidation or brief bouts of profit booking are likely this week, he said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.