BSE Sensex and Nifty 50 fell more than a per cent on Monday, owing to the high commodity prices, inflation worries, and rising Covid cases. BSE Sensex crashed 617 points or 1.08 per cent to end at 56,580, while NSE Nifty 50 was down 218 points or 1.27 per cent to settle at 16953. Index heavyweights such as Reliance Industries Ltd (RIL), Infosys, Tata Consultancy Services (TCS), ITC, and Tata Steel stocks contributed the most to the indices fall. India VIX, Nifty’s volatility index, which indicates the degree of volatility traders expect over the next 30 days in the Nifty50 index, jumped 15.82 per cent to settle at 21.26 levels. Bank Nifty was the only Nifty sectoral index which ended in the green. Broader markets underperformed frontline equity indices. S&P BSE Midcap index fell 1.9 per cent or 460 points to settle at 24,238.68, while S&P BSE Smallcap index was down 1.9 per cent or 549 points to finish trade at 28,699.
Palak Kothari, Research Analyst, Choice Broking
Technically, on an hourly chart, the Nifty 50 index has been trading near the support zone and given closing below 17000 marks suggest bears are taking charge. Furthermore, on a daily chart, the index has taken support from lower Bollinger band and 50% RL of previous up move, which indicates pullback can be seen in the counter. The index has given closing below 200-Daily Simple Moving Averages indicates weakness in the counter. However, the momentum indicators STOCHASTIC & MACD are trading with negative crossover on a daily Charts which indicates downside movement can be seen. The Nifty may find support around 16800 levels, while on the upside 17240 may act as an immediate hurdle for the index. On the other hand, Bank nifty has support at 35500 levels while resistance at 37000 levels.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty started lower and fell below 200days moving average which suggests a rise in bearish bet. The daily RSI is in bearish crossover. On the lower end, Nifty has support at 16800, a fall below 16800 may trigger a further fall in the market. On the higher end, resistance seen at 17200.
Kunal Shah-Senior Technical & Derivative Analyst, LKP Securities
The Bank Nifty index was the outperformer in yesterday’s trading session. The index near-term support is placed at 35800 and a breach below this will lead to a fresh round of selling. The upside resistance is placed at the 36500-37000 zone and a close above this will resume the uptrend.
Vinod Nair, Head of Research, Geojit Financial Services
Global markets were painted red due to below-par earnings results, adding fresh concerns to elevated inflation, oil prices, war uncertainties and supply issue. Fear of waning demand due to prolonged covid lockdown in China led to oil prices tumbling. Continued FII selling in India along with other global uncertainties is favouring bear trend in the short-term.
Mitul Shah, Head of Research, Reliance Securities
Domestic equities closed lower following weak global cues as concerns over worsening inflation have compelled investors to expect a faster rise in interest rates. The market is likely to remain volatile this week as traders roll over their positions in the F&O segment from the April series to May series. The next batch of Q4 results and management commentary, global stock market trends, and the movement of rupee and crude oil prices are likely to assess market sentiments in the near future. Moreover, the ongoing Russia-Ukraine crisis and sanctioning of Russian products would have high negative bearings on global and Indian equities.
