Domestic benchmark indices posted their worst single-day performance since April 2021 with the Nifty50 shutting shop just 50 points above its 200 DMA.
After a gap-down market opening, the sell-off intensified in the second half of Monday as investors fretted over continued FII selloff and a slew of negative global cues such as Russia-UK tensions, rising crude oil prices, inflation, US Fed’s interest rates hike, and supply chain concerns among others.
The 30-share S&P BSE Sensex settled at 56,406 levels, sliding over 1747 points or 3% and the CNX Nifty50 closed at 16,843 levels, slipping almost 532 points or 3% from its Friday closing levels.
The market capitalisation of stocks listed on the Bombay Stock Exchange (BSE) declined by Rs 8.49 lakh crore to Rs 255.42 lakh crore from Rs 263.90 lakh crore from Friday’s closing levels.
Barring TCS and ONGC, all Nifty constituents are in the red zone at the time of writing this report. SBI Bank, Tata Steel, HDFC, HFDC Life, JSW Steel are taking the brunt of the decline in the NSE barometer. Nifty bellwether TCS managed to eke out 1% gains following the announcement of the record date for its buyback offer earlier today.
“On technical aspects, 17000 is expected to act as the key demand zone as it is being backed by the supporting trend line. And till the market is holding the mark, we remain hopeful for a strong resurgence. On the higher end, 17650 is a crucial supply area and if the market manages to surpass the same in a decisive manner, then we might witness reinforcement in the momentum and could expect Nifty to test the psychological 18000 mark in the near future. Until the decisive breakout is not seen, one should expect a range-bound movement and focus on stock-specific action,” noted Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd.
Broader markets fared worse than bluechip gauges as both Nifty Midca 100 and Smallcap 100 indices slipped over 3.3% in intra-day trades today. All sectoral indices witnessed 2-5% losses; Nifty PSU Bank was hammered down by 5.26% and the Metal index traded 4.30% lower in intra-day trades.
On Friday, the market tumbled from the highs owing to the concerns over the US rate hike and corrected to end the week on a negative note with a loss of 0.81 against the previous week’s close.
Till the time, the global uncertainty looms over, we are likely to have challenging scenarios in the market where the volatility is also expected to stay on the higher end.
Apart from the global cues that might dictate the near-term trend, strong leadership from major sectors could help to gain momentum in the domestic market. Going forward, looking at the technical structure and the sentiments among the market participants, indecisiveness could be sensed as the range is getting narrower over the period. Meanwhile, we might witness some outbursts in the near term, and hence stock selective approach should be taken in the market for the coming week.
