Closing Bell: Nifty ends March series below 14,350, Sensex tumbles 740 pts; PSU bank, energy, auto worst hit

Taking Stock: Sensex Tanks 740 Points, Nifty Ends March Series Below 14,350 On Another Day Of Selloff

Nifty PSU Bank, FMCG, auto, infra, IT and energy indices slipped 2-3 percent. BSE midcap and smallcap indices fell 1.8-2.2 percent.... Read More

Markets traded under pressure on the F&O expiry day and lost over one and a half percent. The sentiment was downbeat from the beginning, citing subdued global cues and the continuous uptick in COVID cases in India. Though the benchmark tried to recoup losses in the latter half, selling pressure at the higher levels pushed the bulls on the backfoot. Consequently, the Nifty index ended with sharp losses for the second consecutive session lower by 1.5% at 13,325 levels. The broader markets continued to witness selling pressure as both Midcap and Smallcap ended lower by 2% each. On the sector front, all the indices ended in red wherein auto, realty and consumer durables were the top losers.

The selling pressure has intensified in the last couple of sessions owing to weak global cues and concerns over the second wave of COVID cases. On the benchmark front, Nifty has next critical support at 14,000 levels however rebound in the banking index might result in some bounce or consolidation first. Amid all, we reiterate our cautious stance and suggest traders to focus more on risk management.

Rupee traded in a small range between 72.60-72.70 as the subdued moves in dollar index along with RBI statement of efforts to keep rupee exchange rates stable gave nondirectional moves in rupee. Going ahead markets will be range-bound between 72.40-72.75.

Increased rate of infection across the country & world is creating more pessimism in the market, which has increased today due to monthly expiry. After the stellar rally, the market was on a consolidation stage during the last one month, which amplified post the sudden rise in infection impacting future economic growth. The economic fallout in India from the reduction in world GDP growth is likely to be marginal. A fall in the rate of infection through tougher restrictions and pace in vaccination may quickly stabilize the market.

The Nifty respected the support of 14,300-14,350 on a closing basis. However, if we break 14,300 on a closing basis, we will plummet further to levels closer to 13,600. On the upside, the resistance is at 14,900 and any upside correction can be utilized to short the index for newer targets on the downside.

Weak global cues coupled with derivative expiry kept markets in the red even as we witnessed a bout of short-covering in financials during afternoon trade. Autos bore the brunt of selling today even as we saw steel stocks in demand on hopes of a price rise while select pharma names held out well ahead of a curtailed week ahead.

Indian rupee ended lowerat 72.62, amid selling saw in the domestic equity market.It opened 13 paise lower at 72.69 per dollar against previous close of 72.56 and traded in the range of 72.57-72.69.

Benchmark indices ended lower for the second day in row with Nifty below 14,350 dragged by the PSU Bank, FMCG, auto and energy stocks.

At close, the Sensex was down 740.19 points or 1.51% at 48,440.12, and the Nifty was down 224.50 points or 1.54% at 14,324.90. About 748 shares have advanced, 2147 shares declined, and 170 shares are unchanged.

IOC, Maruti Suzuki, HUL, Bharti Airtel and Coal India were among the major losers on Nifty, while gainers were Tata Steel, Dr Reddy's Laboratories, ICICI Bank, HDFC and JSW Steel.

Nifty PSU Bank, FMCG, auto, infra, IT and energy indices slipped 2-3 percent. BSE Midcap and Smallcap indices fell 1.8-2.2 percent.

Market witnessed some swift recovery from its short-term support around the Nifty50 Index level of 14,300. The 14,300 levels to act as a major support level and the next few days the market stays in the range between 14,300 and 14,700. It’s going to be crucial for the short-term market scenario to sustain above the 14,300 to keep the long-term uptrend intact, a volatility to expand in today’s trading session has been observed.

The momentum indicators like RSI, MACD to start showing positive divergence between the 19th-March-2021 and 25th-March-2021 swing low, indicating a short-term base at the level between 14,250-14,350 level is in the process.

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