The market continued to witness a sell-off on March 10 as the equity benchmarks lost another 1 percent in the second consecutive session amid growing concern over an aggressive rate hike by the US Fed going ahead.
At close, the Sensex was down 671.15 points or 1.12 percent at 59,135.13, while the Nifty slipped 176.70 points or 1 percent to 17,412.90.
However, for the week, both benchmarks lost 1 percent each.
On the back of weak global cues, the market started gap-down and extended the losses as the day progressed amid selling seen across the sectors, barring power.
"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," said Vinod Nair, Head of Research at Geojit Financial Services.
"However, higher-than-expected jobless claims in the US that came in yesterday helped alleviate some concerns about the Fed becoming stricter," Nair added.
Also Read: Freaky Friday sends Sensex down 800 points, Nifty below 200-DMA
Stocks and sectors
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, the Nifty Bank index shed nearly 2 percent, and the PSU Bank index declined 2 percent, while infra, information technology and metal indices were down 0.5 percent each.
The BSE midcap and smallcap indices were down 0.5 percent each.
On the BSE, bank, realty, and capital goods lost 1 percent each, while information technology and metal indices were down 0.5 percent each. However, the power index added 1 percent.
H.G. Infra Engineering, Jindal Saw, Kalpataru Power Transmission, Maxheights Infrastructure, Power Mech Projects and SIEMENS, were among the stocks, which touched their 52-week highs.
On the other hand, more than 100 stocks touched their 52-week low including Pfizer, Relaxo Footwears, Suven Life Sciences, Muthoot Finance, TV Today Network, Gillette India and Aarti Drugs.
Among individual stocks, a volume spike of more than 200 percent was seen in Persistent Systems, Polycab India and Zydus Lifesciences.
A short build-up was seen in Polycab India, Intellect Design Arena and Delta Corp, while a long build-up was seen in Dixon Technologies, Balkrishna Industries and Gail India.
Outlook for March 13
Amol Athawale, Deputy Vice-President - Technical Research, Kotak Securities
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 cards 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 to 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, 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.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The Nifty opened on a weak note today and consolidated thereafter for the most part of the day to close with a cut of nearly 177 points. On the daily charts, we can observe that the Nifty has closed well off the lows it witnessed post-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 the 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 a 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.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
