It turned out to be a tough day for the investors on Dalal Street as the Sensex ended 1,172.19 points lower, dragged down by heavyweights Infosys and HDFC twins amid a weak trend in Asian markets.
It turned out to be a tough day for the investors on Dalal Street as the Sensex ended 1,172.19 points lower, dragged down by heavyweights Infosys and HDFC twins amid a weak trend in Asian markets.
The 30-share BSE Sensex tanked 1,172.19 points or 2.01 per cent to settle at 57,166.74. During the day, it plummeted 1,496.54 points or 2.56 per cent to 56,842.39. The broader NSE Nifty plunged 302 points or 1.73 per cent to finish at 17,173.65.
Private sector lender HDFC Bank and IT major Infosys, which together hold nearly 18 per cent weightage in the Nifty index, retreated up to 9 per cent after lower-than-expected financial results for the quarter ended March 31.
Meanwhile, the wholesale price-based inflation zoomed to a four-month high of 14.55 per cent in March on rising prices of crude oil and other commodities due to disruption in the global supply chain in the wake of the Russia-Ukraine war, a development that may prompt the RBI to raise interest rates to contain price rise.
“We expect FY23 to witness continued volatility in equity markets, especially in the first half of the year with rising interest rates globally and high inflation, which is expected to persist. In this scenario, we expect money to move from long-duration debt funds to equity funds in the second half of the year, which should bode well for equities,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities.
“We continue to remain positive on sectors like Metals, Hospitals, Hospitality, Oil Refining, Capital Goods, etc. Some underperforming sectors might include Discretionary Consumption, IT, NBFCs, etc.,” he added.
“Taking cues from the international markets, the Indian benchmark indices are on a verge of correction led by further weaknesses in IT stocks. Nifty may show the selling up to the 16800 levels in this momentum. Lower level buying may trigger once the market sustain above the support of 16800-16500 levels,” Dr. Ravi Singh-Vice President and Head of Research-ShareIndia told Business Today.
According to Divam Sharma, founder, Green Portfolio, there is a worry of recession in leading economies like the US. Power stocks are facing the heat today as there is a significant rise in DISCOM’s dues to power producers and this trend is further aggravating with the rise in energy prices and energy demand.
The analyst expects the volatility to prolong as inflation, higher interest rates and global economic instability will keep markets on the edge.
Sharing the technical view, Sumeet Bagadia, Executive Director, Choice Broking said that the index has formed a Doji candlestick on the daily chart but closed below the Middle Bollinger Band formation & 100-Days Exponential Moving Averages that suggests bearish moves for the coming day. An indicator MACD & Stochastic witnessed a negative crossover on the daily time frame, which supports the bearish sentiments. At present, the index is having support at 17000 levels while resistance is placed at 17370 levels. On the other hand, Bank nifty has support at 36200 levels while resistance at 37400 levels.
Manoj Dalmia, founder and Director, Proficient Equities Limited, expects the market to be volatile and Nifty to be in the range between 16900 and 17500.
Reference Link:- https://www.businesstoday.in/markets/top-story/story/bears-tighten-grip-as-sensex-crashes-over-1400-points-heres-what-experts-say-330251-2022-04-18