Indian markets snapped a two-day winning run and ended lower with Nifty below 22,350 as investors remained cautious ahead of the release of US inflation data tomorrow.
At close, the Sensex was down 616.75 points or 0.83 percent at 73,502.64, and the Nifty was down 160.80 points or 0.71 percent at 22,332.70.
Amid weak global cues, the market opened flat with positive bias with Nifty hitting fresh all-time high of 22,526.60 but erased all the gains and turned negative in the initial hours. However, market extended the losses as the day progressed amid selling across sectors.
Top losers on the Nifty were Tata Consumer Products, Power Grid Corporation, Tata Steel, Bajaj Auto and SBI, while gainers included Apollo Hospitals, Nestle India, Cipla, SBI Life Insurance and Bajaj Finserv.
All the sectoral indices ended in the red with auto, capital goods, FMCG, oil & gas, bank, Information Technology, realty, metal and power down 0.5-1 percent each.
The BSE mid-cap index shed 0.2 percent and small-cap index fell 2 percent.
Nearly 200 stocks touched their 52-week high on the BSE, including ABB India, Blue Star, Cipla, Colgate Palmolive, Cummins India, GE T&D India, Glenmark Pharma, Godfrey Phillip, KEC International, Kirloskar Brothers, KPIL, Lupin, Oracle Financial Services, Siemens, Torrent Power, Trent, TTK Healthcare, Waaree Renewable, Zydus Life, among others. Click here for the full list
Among individual stocks, a volume spike of more than 700 percent was seen in Interglobe Aviation, Siemens and Balkrishna Industries.
A long build-up was seen in Interglobe Aviation, ICICI Prudential Life Insurance Company and Apollo Hospitals, while a short build-up was seen in HPCL, Vodafone Idea and NMDC.
Outlook for March 12
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:
The Nifty opened on a flat note and as the day progressed the Nifty drifted lower to close the day in the red down ~160 points. On the daily charts we can observe that Nifty has not witnessed follow through buying interest after a decisive breakout. It is witnessing selling pressure at higher levels. This could result in Nifty slipping back into the consolidation zone 22100 – 22600.
The daily Bollinger bands are contracting indicating a range contraction and is likely to result in a range bound price action going ahead. The expectation of trending moves on the upside is fading away in the absence of strength from the key heavyweights of the index. In terms of levels, 22224 – 22167 is the crucial support zone while 22530 – 22600 is the immediate hurdle zone from short term perspective.
Bank Nifty filled the gap created on January 17 and thereafter has been unable to carry on the positive momentum. On the downside it can slip towards the 46900 – 46800 where support in the form of 50% Fibonacci retracement level of the rise from 45662 – 48161 and the 20-day moving average (46818) is placed.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty has been fluctuating within an ascending channel, displaying a pattern of higher highs and higher lows. The overall trend continues to be bullish, although there is currently an intermediate corrective phase in progress. In the short term, Nifty could experience weakness, possibly leading to a decline toward the range of 22200-22250. Looking at the upside, immediate resistance is identified at 22400 based on closing prices.
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