Domestic markets tanked on Thursday as Russia invaded Ukraine after months of rising tensions. S&P BSE Sensex sank 2,702 points or 4.72% to settle at 54,529 while the broader Nifty 50 index nosedived 815 points or 4.78% to close the day at 16,247. India VIX, the fear gauge of domestic markets rallied a massive 30% to sit at 30.98 levels. Ahead of the final trading session of the week, SGX Nifty was up 205 points, hinting at some pullback after yesterday’s bearish movement. Global cues were also suggesting positive momentum.
Global cues: The NASDAQ rallied 3.35% on Thursday, followed by S&P 500 and the Dow Jones. Wall Street equity indices rebounded intraday after having opened in red. Among Asian stock markets, Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were up with gains.
Technical take: Benchmark indices have been moving southward for a few trading sessions now but yesterday’s move was the biggest of all. “A long bear candle was formed on the daily chart with large opening downside gap. Technically, this pattern indicates a decisive downside breakout in the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that an immediate sharp upside recovery or V type recovery is not expected.
Levels to watch out for: Nifty has broken its crucial support at 16800 which, chartists say signals more downside. “Major support at 15950/16000 while Resistance at 16800. Keep an eye on India VIX and gold prices for signs of market stability. We are not out of the woods yet but shortly we Should be,” said Rahul Sharma, Director & Head – Research, JM Financial.
FII and DII trades: Foreign Institutional Investors (FII) were again net sellers of domestic equity, pulling out Rs 6,448 crore. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 7,667 crore.
Nifty reconstitution: Apollo Hospitals Enterprises will enter the benchmark Nifty 50 index on March 31, a notification by the NSE said. The stock will replace Indian Oil Corporation as expected. Further, the Nifty Next 50 will witness the entry of Paytm, Zomato, Nykaa, and Mindtree among others. Yes Bank along with 5 other scrips will exit the Nifty Next 50 index.
