“Equity markets ended in red for fourth day in a row, at lowest level in two weeks on the back of weak global and domestic cues. Nifty recovered most of its losses for the day and closed 0.4% lower, ending the session at 11,993. The overall market breadth was weak with Nifty Midcap 100/Nifty Smallcap 100 were down 0.6%/0.4%. All the sectors ended in red except IT and Media with Metals and Auto being the biggest loser. The buying was witnessed in the last hour of the trade in IT companies along with PSUs which led to the recovery in the markets.
The ongoing AGR issue weighed on the banking and the telecom stocks as the telecom players make the partial payment. On the global front, markets reacted sharply after the iPhone maker warned it was unlikely to meet the March quarter sales guidance it had set just three weeks ago. This raises concerns over the fallout of the coronavirus outbreak on global economy. Even HSBC has said that it plans to shed around 35,000 jobs in Europe and US, due to social unrest in Hong Kong and the coronavirus outbreak, which further dented the market sentiments.
Going forward, markets may remain range-bound with biasness towards negative due to lack of trigger/major event domestically and rising global uncertainties. The markets would track the global markets and witness huge volatility tracking the developments around coronavirus and its impact.Technically, Nifty formed a Hammer candle on daily chart. Going forward, if Nifty sustains above 12031 levels, then we may see a bounce towards 12150 – 12200 levels. On the flipside, immediate support is now placed at 11900 and then 11830 levels.”
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