Closing Bell: Nifty ends around 17,400, Sensex falls 671 pts; power stocks outshine

Taking Stock | Market extends losses; Sensex falls 671 points, Nifty ends around 17,400

On the sectoral front, the power index rose 1 percent, while banks, realty, capital goods and PSU Bank were down 1-2 percent.... Read More

Domestic indices extended losses for second consecutive day in line with sell off in global markets triggered by 60% fall in US based Silicon Valley Banks. Nifty opened with deep cuts and remained in negative territory to close with loss of 177 points (-1%) at 17413 levels. All sectors ended in red with major selling seen in banking stocks.

Fall in the select US banks added to the overall Global uncertainty regarding the quantum of the next Fed rate hike. US jobs data that would be released late on Friday will also be crucial for upcoming Fed’s meeting as it could also influence the Fed rate decision.

Expect the volatility to continue next week as well. On the domestic front, Feb inflation data would be released while on the global front, ECB meeting would be key event to watch out for.

The Nifty opened on a weak note today and consolidated thereafter for most part of the day to close with cut of ~177 points. On the daily charts we can observe that the Nifty has closed well off the lows it witnessed post the opening. It is currently trading around the 200-day moving average (17,434) which is attracting value buying. This could lead to volatility as both Bulls and Bears would try to defend and break that average.

Broadly, the index has shifted its range lower to 17,800 – 17,200 for short term perspective. Despite the sharp fall, the daily momentum indicator still has a positive crossover which suggests that this dip should be bought into.

Until Nifty breaches this range decisively on either side, the rangebound action is likely to continue and we might see sector rotation and stock specific action.

Markets crumbled for the second straight session as weak global cues triggered selling across the board with banking stocks taking the maximum pounding.

The sentiment has been bruised by the recent US Fed statement that more rate hike is on the card to keep inflation under control, which could fuel recession fears going ahead.

Technically, the Nifty has formed a strong bearish candle on weekly charts and it is comfortably trading below the 20 and 50-day SMA. For the positional traders, 17,550 would act as a medium term resistance zone and below the same, the index could slip till 17,150.

On the flip side, a minor pullback rally is possible, if the index trades above 17,425 and could move up to 17,480-17,500. Meanwhile, the Bank Nifty also breached the important support level of 41,000 or 20-day SMA (Simple Moving Average) which is broadly negative. Below the same it could retest the level of 40,000-39,800.

The global market's cautious attitude towards the probability of a sharper rate hike was exacerbated by further negative signs from the US market. Selling intensified as the market awaited the release of US unemployment and non-farm payroll data, which will have a significant impact on the upcoming Fed meeting. However, higher-than-expected jobless claims in the US that came in yesterday helped alleviate some concerns about the Fed becoming stricter.

Indian rupee closed marginally in red at 82.05 per dollar against previous close of 81.98.

Benchmark indices ended lower for the second consecutive session on March 10 with Nifty around 17,400.

At Close, the Sensex was down 671.15 points or 1.12% at 59,135.13, and the Nifty was down 176.70 points or 1% at 17,412.90. About 1404 shares advanced, 2021 shares declined, and 102 shares unchanged.

The major losers on the Nifty were Adani Enterprises, HDFC Bank, Apollo Hospitals, IndusInd Bank and HDFC, while gainers were Tata Motors, NTPC, Maruti Suzuki, Britannia Industries and BPCL.

On the sectoral front, power index rose 1 percent, while bank, realty, capital goods and PSU Bank down 1-2 percent.

The BSE midcap and smallcap indices down 0.5 percent each.

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Glenmark Life Sciences was quoting at Rs 391.80, up Rs 5.15, or 1.33 percent.

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NBCC (India) was quoting at Rs 37.70, up Rs 0.64, or 1.73 percent.

Indian Rupee depreciated marginally by 0.04% on Friday amid weak domestic markets. However, weak dollar cushioned the downside. Dollar slipped from three months high on weak US markets and disappointing weekly jobless claims data which rose to 211,000 from 190,000 in the previous week.

We expect rupee to trade with a negative bias on risk aversion in global markets and selling pressure from FIIs. However, weak greenback, declining US Treasury yields and a fall in crude oil prices may cushion the downside.

Traders may remain cautious ahead of non-farm payroll, average hourly earnings and unemployment rate data from US. Trader may also watch out for India’s industrial production data which is expected better than previous month. USDINR spot price is expected to trade in a range of Rs 81.60 to Rs 82.50.

Oil fell for a fourth session on Friday, heading for its biggest weekly loss in five weeks on worries about the prospect of steep interest rate hikes in the United States hitting fuel demand.

Brent dipped 41 cents, or 0.5%, to $81.18 a barrel by 0852 GMT. U.S. West Texas Intermediate crude (WTI) was down 56 cents, or 0.7%, at $75.16.