Closing Bell: Sensex, Nifty end flat amid volatility; PSU Banks outshine

Taking Stock: Sensex, Nifty Close Flat Amid High Volatility; PSU Banks Outperform

Except FMCG and auto, all the sectoral indices ended in the green with energy and PSU bank benchmarks adding 1 percent each. Mid and smallcaps indices outperformed with gains of 0.3-0.6 percent each.... Read More

Highly volatile global markets are weighing heavy on our markets. However, this is a corrective pattern to the vertical rally that all indices across the world witnessed between 1st February to 16th February 2021. Today, Asian markets failed to hold initial gains and our markets also fell from the highs.

We can see further fall in the market until indices cross 15,280/51,540 levels. On Tuesday, Nifty/Sensex would find the support between 14,860/14,890 (50,150/50,200) levels, however, on the dismissal of 14,860/50,150, indices could fall to 14,730/50,000 or 14,650/49,500 levels. The focus should be on the Oil & Gas related stocks.

Markets ended flat in a volatile trading session, in line with the prevailing consolidation phase. The benchmark started the day on a firm note led by positive global cues however profit-taking at higher levels, especially in the banking stocks, trimmed gains as the session progressed. Consequently, the Nifty settled at 14,956; up by 0.12%. The broader indices managed to outperform the benchmark as both Midcap and Smallcap ended higher by 0.3% and 0.6%. Amongst the sectors, a mixed trend was witnessed wherein Telecom, Auto and Realty ended with losses whereas IT, Oil & Gas and Metals ended in the green.

Markets are currently dancing to the global tunes, so a breakout/breakdown in the world markets might trigger the next directional move here. Meanwhile, participants should restrict naked leveraged positions and focus more on selection of stocks. Crude oil prices and bond yields would continue to remain on their radar for cues. On the domestic front, COVID-19 cases, macro data like IIP, CPI would also be actively tracked.

Rupee traded weak as a base seems to have formed near 73.00 as the level which witnessed strong breach on the upside on 26Feb again it has taken the support near the said levels due to rise in Crude prices which has touched 70$ mark in brent.

Along with that rise in dollar prices also weakens the rupee. The range between 73.00 - 73.65 will be seen with volatile moves.

Domestic markets pared its early gains taking cues from weak Asian markets, falling US futures and rising oil prices. Oil & Gas, PSU Banks and Metal stocks were the sectors in focus inching broader market. Oil prices were parked near record highs following geopolitical issue in Gulf while reports of the progress of PSU Bank privatization tempered buying in PSBs.

Index opened a day with gains but unable to sustain on highs and after showing good volatility index closed a day at 14,959 with mild gains of 21 points. The index has formed stiff resistance near 15,070 and if the index managed to cross above-said levels then some positive traction can be witnessed in the index and we may see a good move towards a good hurdle zone of 15,150-15,240 zone. The immediate support for Nifty is coming near 14,900-14,850 zone.

View is positive on the auto sector with more positivity on PVs and CVs. 2W growth is flattening out while tractors may report a fall in FY22 on a super high base of FY21.

PVs growth will be driven by new entrants, new launches, sentimental positives and personal mobility, while CVs will be driven by a surge in economic and industrial activities and low base of FY 21.

As expected, the markets have been trading sideways all day. We were not being able to get past 15,300 or break fiercely below 14,800. A trigger of either level will pave the way for the next rally up or down. Until then traders would be advised to tread cautiously with strict stops.

Indian rupee ended near the day's low point at 73.25 per dollar, amid volatile trade saw in the domestic equity market.

It opened 16 paise lower at 73.18 per dollar against Friday's close of 73.02 and traded in the range of 72.92-73.29.

The market witnessed an attempt to break above the resistance level around the Nifty 50 Index level of 15,100. However, the market failed to hold on to that level and gave up its early gain to end marginally positive for the day. The expected levels of the market are likely to be in the range of 14,900 and 15,250, and it’s going to crucial for the short-term market scenario to sustain above the 14,900 Nifty50 Index level.

The momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook and advise the traders to consider a breakout above 15,250 as an opportunity to build fresh long.

Benchmark indices erase most of intraday gains and ended marginally higher breaking two-day of profit booking.

At Close, the Sensex was up 35.75 points or 0.07% at 50,441.07, and the Nifty was up 18.10 points or 0.12% at 14,956.20. About 1698 shares have advanced, 1382 shares declined, and 208 shares are unchanged.

UPL, GAIL, L&T, ONGC and SBI Life Insurance were among major gainers on the Nifty, while losers were Shree Cements, Bajaj Finance, UltraTech Cement, IndusInd Bank and Bajaj Auto.

WTI Crude oil prices are currently trading near USD 66.81 per barrel supported by an attack on Saudi oil infrastructure and OPEC+ decision on the production level. Oil prices rallied after Saudi Arabia claimed that some of its protected oil infrastructures came under missile and drone attack in an escalation of regional hostilities that sent crude prices surging. However, oil output appeared to be unaffected.

WTI Crude oil prices are likely to trade firm, it may find a strong support base around USD 65.40 and USD 63.87 per barrel while key resistance levels are seen around USD 68.40-YSD 68.90 per barrel level.

Benchmark indices erased all the intraday gains and trading flat in the volatile session.

At 15:11 IST, the Sensex was down 39.15 points or 0.08% at 50,366.17, and the Nifty was down 6.10 points or 0.04% at 14,932. About 1587 shares have advanced, 1306 shares declined, and 161 shares are unchanged.