Nifty, Sensex end flat as media, IT stocks fall; global triggers eyed for direction

The market capitalisation of all BSE-listed stocks is now within a kissing distance of touching the Rs 400 lakh crore milestone for the first time.

Benchmark indices Nifty and Sensex lacked direction, and ended flat in on March 5. In the absence of any major domestic event, market participants will continue to take cues from the global indices, Federal Reserve boss Jerome Powell’s congressional testimony and China’s National People’s Congress.

The Sensex ended 195.16 points or 0.26 percent down at 73,677.13, and the Nifty fell 49.30 points or 0.22 percent to 22,356.30. About 1,080 shares advanced, 2,232 declined, and 59 were unchanged.

The market capitalisation of all BSE-listed stocks is now within a kissing distance of touching the Rs 40-lakh-crore milestone for the first time.

In the broader market, BSE Midcap and BSE Smallcap index fell 0.17 percent and 0.63 percent, respectively.

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In terms of sectors, the Nifty PSU Bank led the gains, surging by more than 2 percent, propelled by notable gains from Central Bank, Indian Overseas Bank, and UCO Bank, which rose by up to 6 percent.

Nifty Auto rose over 1 percent, buoyed by the performance of Tata Motors, Motherson, and TVS Motor Company stocks, which saw increases of up to 2.8 percent.

On the flip side, Nifty Media and Nifty IT indices fell over 1 percent, followed by Nifty FMCG, Metal and Healthcare.

Fundamental view

The market is likely to remain range-bound in the near-term. Weakness in the small cap segment is likely to continue. The Chinese National People’s Congress which has begun will be keenly watched by the markets, said analysts.

"Announcements relating to the initiation of growth stimulating reforms have the potential to attract big money into their stock market, which is now trading at cheap valuations. Therefore, it is important to watch out for developments in China. While there is fundamental support to the Indian stock market, high valuations can constrain further rally," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Technical view

On the daily charts, Nifty is in the process of retesting the breakout of 22,300 it gave during last week. The hourly moving averages placed in the range 22,369 – 22,264 shall act as a crucial support zone, said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

"Until the Nifty manages to hold on to this zone, we can expect the next leg of upmove to resume. The initial target and immediate hurdle is placed at 22,460 – 22,530. The hourly momentum indicator has a negative crossover however has reached the equilibrium line indicating that the fall may have matured and once this consolidation has completed the upmove is likely to resume," he said.

Bank Nifty has been outperforming the Nifty and Gedia expects the phenomenon to continue until support from NIFTY IT kicks in. "In terms of levels for Bank Nifty, 47,350 – 47,300 is the crucial support zone while 48,000 – 48,200 is the immediate hurdle," Gedia added.

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