The Indian equity benchmarks had their biggest single-day fall in 10 months on February 14, falling 3 percent each amid a global selloff triggered by escalating tensions between Russia and the West over Ukraine and growing worries about rate hike by the Federal Reserve.
At close, the 30-pack Sensex was down 1,747.08 points, or 3 percent, at 56,405.84, and the Nifty was down 532 points, or 3.06 percent, at 16,842.80.
Amid weak global cues, the market again opened gap-down and extended the losses as heavy selling was seen across the sectors, turning negative for the year 2022.
As the market posted its biggest single-day fall in the last 10 months, the Sensex and the Nifty are now down more than 9 percent from the record highs of October 2021.
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"Increased tension between the US and Russia over Ukraine sent oil prices rising and forced investors to dump risky assets. Risk sentiment was further dampened ahead of the Fed’s emergency meeting which heightened fears of aggressive monetary tightening," said Vinod Nair, Head of Research at Geojit Financial Services.
On the domestic front, the annual WPI inflation eased marginally to 12.96 percent in January from 13.56 percent in December but was still high amid moderation in the fuel and power prices, he added.
Also read: Gainers & Losers: 5 stocks that moved the most on February 14
JSW Steel, HDFC Life, ITC, Tata Steel and Tata Motors were the top Nifty losers, while the only Nifty gainer was TCS.
All the sectoral indices ended in the red. Nifty bank, auto, pharma, FMCG, metal, and PSU Bank indices were down 2-6 percent.
Broader markets were hit even harder. The BSE midcap index tanked 3.5 percent and the smallcap 4.2 percent.
Also Read: Manic Monday for Indian markets, here are 4 factors for the steep decline
Stocks and sectors
On BSE, auto, bankex, oil & gas, healthcare, FMCG, metal, power, realty and capital goods indices lost 2-5 percent.
A short build-up was seen in the Metropolis Healthcare, Honeywell Automation and LIC Housing Finance.
Among individual stocks, a volume spike of more than 200 percent was seen in Honeywell Automation, ONGC and Metropolis Healthcare.
Over 150 stocks, including ONGC, HCC, and DB Realty, hit a 52-week high on the BSE. MCX India, NCC, HDFC, Alembic and Amara Raja Batteries were among more than 100 stocks that hit a 52-week low.
Also read: India VIX jumps over 20% amid Ukraine-Russia tensions, experts expect higher volatility to stay
Outlook for February 15
Santosh Meena, Head of Research, Swastika Investmart
Technically, the Nifty is trading near its 200-DMA of 16,800 which is critical support. If the index manages to hold this level, we can expect a bounce-back, otherwise, further weakness towards 16,450-16,000 is likely.
On the upside, 17,100 will act as an immediate hurdle, while 17,350-17,500 is a critical resistance zone.
Short-term traders are advised to keep an eye on the 16,800, while long-term investors should take the current fall as a buying opportunity because, anecdotally, any panic due to geopolitical tension creates good buying opportunities.
Rahul Sharma, Co-owner, Equity 99
Considering the volatility in the market, investors are advised to keep a strict stoploss Buying on dips is suggested but investors should plan their position keeping adequate liquidity.
For the Nifty, 16,745 will act as a strong support. If the level is breached, we may see 16,620 after which 16,500 will be the next strong support.
On the upper side, 16,900 will act as resistance. If the level is overcome, the index may go to 17,070 and 17,200 would be the next resistance.
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
Technically, the Nifty has formed a bearish gap down candlestick, which suggests further weakness.
The Nifty is trading near the 200-day SMA. As long as the index trades below 17050, there are chances of it slipping to 16,750 and the 16,550.
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.
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