Closing Bell: Nifty ends below 16,500, Sensex falls 366 points; auto, banks major hit

Markets remained volatile and settled with a cut of over half a percent, in continuation to the prevailing trend. Firm global markets triggered an uptick in early trade but it couldn’t sustain for long and gradually slipped lower as the day progressed. Consequently, Nifty closed around the day’s low to settle at 16,498 levels; down by 0.65%. A mixed trend was witnessed on the sectoral front wherein energy, IT, and metal witnessed decent traction while auto, banking, and FMCG traded lackluster.

Markets are punishing sectors/stocks which are heavily dependent on oil while metal and select energy stocks are playing savior. We’re seeing a kind of balancing act in the index however negativity in the banking space may result in a fresh fall ahead. We reiterate our cautious stance and suggest preferring a hedged approach.

Market continues to remain bearish amid weak global clues and rising crude oil price. Also the price of many commodities are on high considering the war situations between Russia & Ukraine. Investors are advised to remain cautious and keep strict stop losses to their positions.

For Nifty50 – 16450 will act as immediate support for broader markets. If this level is breached than next support will be at 16375 levels, post which 16250 will be very crucial support for Nifty.

On upper side 16600 will act as strong resistance. If this level is broken than next resistance level will be at 16720 level. Post which 16850 will be crucial hurdle rate for Nifty.

The subdued trend of the domestic market continued however the level of volatility is reducing. Today large caps were more muted, dragged by FIIs selling, compared to the broad market.

The release of strategic reserves of oil in India & abroad along with increased output from OPEC is expected to ease crude prices in the future.

Additionally, the Indian market will look at the state election exit poll data while the global market on war developments, BoE, and Fed policy meeting status from next week.

The Nifty had formed a Popgun pattern on the hourly chart at the hourly lower Bollinger Band on March 02. The index took a leap on the upside as a follow through of this bar pattern. On the higher side, the level of 16800 acted as a key barrier yet again.

The hourly upper Bollinger Band also put a pressure near 16800. Thus the index slipped into correction mode from these hurdles.

On the downside, it has fallen back towards the hourly lower Bollinger Band, which is expected to provide support. Thus 16400-16800 is likely to be the consolidation range over the next few sessions with major support at 16200.

Nifty ended lower after a volatile trading session. On the lower end 16450 acted as support whereas on the higher end 16700 acted as resistance.

A bearish candle after doji suggests negative set up. On the lower end, 16450 may remain a support; whereas, on the higher end 16650-16700 is likely to act as resistance.

Volatility continues to remain elevated in the markets - in line with volatility seen across global markets. For the March series, momentum support level is seen at 16350; resistance is placed at 16800-17000 levels.

Suggest maintaining long positions as long as momentum support level is held. Bank Nifty is expected to underperform in the near term until strong reversal is seen - midcap stocks also remain under pressure. Preference remain for select frontline stocks in the current scenario.

Benchmark indices ended lower with Nifty below 16500 in the highly volatile market on March 3 dragged by the auto and financial names.

At close, the Sensex was down 366.22 points or 0.66% at 55,102.68, and the Nifty was down 108 points or 0.65% at 16,498. About 1963 shares have advanced, 1279 shares declined, and 116 shares are unchanged.

UltraTech Cement, Asian Paints, HDFC Life, Shree Cements and Eicher Motors were among the top Nifty losers. Gainers were ONGC, UPL, Power Grid Corp, Wipro and Tech Mahindra.

Among sectors, auto, capital goods and bank fell 1-2 percent, while FMCG and realty indices down 0.5 percent each. However, metal, IT, oil & gas, power indices rose 1-2 percent. BSE midcap index shed 0.6 percent and smallcap index rose 0.35 percent.

Broking firm Morgan Stanley has kept overweight rating on UPL with a target at Rs 951 per share.

The company delivered earnings at upper end of its guidance in 9MF22.

The promoters own 28.24% stake & they do not intend to participate in buyback, it added.

UPL was quoting at Rs 714.80, up Rs 25.70, or 3.73 percent on the BSE.

Time Technoplast announced receipt of the most awaited single largest order of 7,58,814 Nos. cylinders of 10 kg capacity for a value of Rs 180 crore (appx.) from Indian Oil Corporation Limited (IOCL), to be supplied over the next 12 months.

This is for the first time in India that the Public Sector OMC has come out with such a large order for Type-IV LPG Composite Cylinders.

Furthermore, IOCL has said that the same order quantity may be repeated at their discretion for a further period of up to 12 months, on same terms and conditions.

Time Technoplast was quoting at Rs 73.90, up Rs 6.55, or 9.73 percent on the BSE.

Motilal Oswal Asset Management Company (MOAMC) has announced the launch of its Low Volatility factor-based ETF and Index Fund – Motilal Oswal S&P BSE Low Volatility ETF (Exchange Traded Fund) and Motilal Oswal S&P BSE Low Volatility Index Fund.

These are open ended scheme replicating/tracking the S&P BSE Low Volatility Total Return Index. The low volatility strategy involves buying stocks which have higher stability in price movements based on past returns.

Lupin has received approval from the United States Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA), Efinaconazole Topical Solution, 10% to market a generic equivalent of Jublia Topical Solution, 10%, of Bausch Health Americas, Inc.

The product will be manufactured at Lupin's facility in Pithampur, India.

Lupin was quoting at Rs 718, down Rs 10.25, or 1.41 percent on the BSE.

Russia's central bank has imposed a 30% commission on foreign currency purchases by individuals on currency exchanges, brokers told Reuters, citing a letter from the regulator.

The central bank has not immediately replied to a request for comment, reported Reuters.

The Russian rouble slid further on Thursday, hitting record lows against the dollar and euro, after ratings agencies Fitch and Moody's downgraded Russia's sovereign debt to "junk" status citing the impact of Western sanctions.

At 0830 GMT, the rouble was more than 10% weaker against the dollar at 117.5 and had lost over 7% against the euro to trade at 124.1 on the Moscow Exchange, marking the first time the rouble has traded above 110 to the dollar in Moscow.

The Russian central bank imposed a 30% commission on foreign currency purchases by individuals on currency exchanges - a move brokers said appeared designed to curb demand for dollars - but that did little to halt the rouble's slide.