Bears dominated Dalal Street as Indian equity markets witnessed major sell-off on Monday due to Russia-Ukraine geopolitical tensions and inflation concerns. Benchmark indices ended lower for the second consecutive session as BSE Sensex ended 1,747.08 points or 3.00% down at 56,405.84, while the Nifty 50 settled 532 points or 3.06% lower at 16,842.80. All the sectoral indices ended in red with auto, bank, oil & gas, PSU Bank, pharma, FMCG, metal, realty and capital goods indices down 2-6 per cent. In broader markets, BSE Midcap and Smallcap indices fell 3-4 per cent. “At present, Nifty has support at 16800/16650 levels while resistance comes at 17100 levels. On the other hand, Bank nifty has support at 36370 levels while resistance 37600 at levels,” said Sachin Gupta, AVP, Research, Choice Broking.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
We have closed below 17000 which is a matter of concern as the bears would now take over the medium-term trend of this market. The index can slide further to 16300-16400. Any up move would now become an opportunity to sell the Nifty.”
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers
“Indian markets opened in red tracking global cues as investors monitor heightened geopolitical risks in eastern Europe amid Ukraine crisis. During the afternoon session markets further fell as the geopolitical breakdown in eastern Europe also had a bearing on oil prices which is seen further adding to the already high inflation globally and has potential to jeopardize economic recovery.”
Aishvarya Dadheech, Fund Manager, Ambit Asset Management
“The Indian market witnessed pullback due to Ukraine and inflation concerns. Oil prices can shoot up further if ongoing tussle between Russia-Ukraine escalates or due to any retaliatory sanctions by the US. India will be adversely impacted if crude goes any higher, as India will see higher pressure on its BOP, as well as it will import higher inflation. Market is also anxious that with rising inflation (on crude strengthening), the Fed may act faster than expected on tapering as well as rate hike.”
Santosh Meena, Head of Research, Swastika Investmart Ltd
“Indian market tumbled sharply amid geopolitical tension. This geopolitical tension is leading to a sharp surge in crude oil prices and the dollar index which is another negative trigger for emerging markets like India. We are seeing continuous selling by FIIs while DIIs flows may also come down ahead of big LIC IPO. The inflation and rising interest rate environment in the US is still a concern for the market and this geopolitical tension is creating a double whammy situation for the global markets.”
“Technically, Nifty is trading near its 200-DMA of 16800 which is a critical support level and if Nifty manages to hold this level then we can expect a bounceback otherwise further weakness can be expected towards 16450/16000 levels. On the upside, 17100 will act as an immediate hurdle while 17350-17500 is a critical resistance zone. Short-term traders are advised to keep eye on the 16800 level 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.”
“Banknifty is also trading near its 200-DMA of 36500; below this, weakness may get extension otherwise a bounceback is expected towards 37500/38000 levels. Put call ratio has again come down to 0.78 mark means it is in oversold territory.”
Rupak De, Senior Technical Analyst at LKP Securities
“Nifty broke a rising trend line on the daily chart and the physiological support as it drifted down below 17000 mark. As a result Nifty has reached to its 200DMA which is considered as the line of polarity for long term trend. Going forward the Nifty may remain very volatile; on the lower end support is placed at 16800; below 16800 severe corrections may continue. On the higher end, resistance is seen at 17100.”
Vinod Nair, Head of Research at Geojit Financial Services.
“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. On the domestic front, the annual WPI inflation eased marginally to 12.96% in January from 13.56% in December, but still high, amid moderation in the fuel and power prices”
Financial Express is now on Telegram. 
