Markets end lower on weekly F&O expiry, volatility persists amid Ukraine-Russia tensions
The bears dragged Indian stock markets into the red in a highly volatile session on the index’s weekly expiry day as uncertainty lingered around the Ukraine-Russia scenario. Sensex finished 104 points lower at 57,892, while Nifty 50 held 17,300 to settle at 17,304, down 17.60 points.
The bears dragged Indian stock markets into the red in a highly volatile session on the index’s weekly expiry day as uncertainty lingered around the Ukraine-Russia scenario. Sensex finished 104 points lower at 57,892, while Nifty 50 held 17,300 to settle at 17,304, down 17.60 points. The broader market underperformed and closed with a loss of 1%. With the exception of FMCG and Oil & Gas, all other sectors ended in the red, with Nifty Bank the biggest laggard, down 1%. India’s VIX rose 6.9% to 22 levels. ICICI Bank, Axis Bank, UltraTech Cement, IndusInd Bank and UPL were the biggest losers from Nifty, while winners included Tata Consumer Products, ONGC, HDFC, Reliance Industries and HDFC Life.
Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd
“Equity markets have seen a spike in volatility over the past two days due to variable news flows from the Ukrainian border. Nifty traded in a wider range of 16,800-17,400 and needs a decisive break on either side for a clear direction.For now, investors will have to navigate their way through the Ukraine crisis and the rising rate environment to stay the course.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“Nifty’s short-term trend continues to be choppy with high volatility and a similar move is expected in the next session. A sustained move only above the 17650 levels should bring the bulls back into action. immediate support is placed at 17150 levels.
Palak Kothari, Research Associate, Choice Broking
“Technically, the index traded with lower highs and lower lows indicating weakness for an upcoming session. Additionally, the index traded below the middle Bollinger Band , which suggests a bearish move in the meter. On a daily chart, the index has been trading below 21*50-DMA with the negative crossover suggesting weakness for the next session. Additionally, the indicator Stochastic Daily Momentum & MACD was also trading with a negative crossover which adds weakness to prices Currently the index has support at the 17130 levels, a breach below this level may show further decline up to the 17000-16800 levels while resistance comes in at the 17500 levels. On the other hand, Bank nifty has support at 36800 levels while resistance at 38500 levels.
Mohit Nigam, Head – PMS, Hem Securities
“Benchmarks posted losses for the second consecutive session, led by banks, consumer durables and oil and gas stocks with Sensex down 104.67 points or 0.18% at 57,892 and the Nifty losing 17.60 points or 0.10% to 17,304.6. This is due to US futures falling and crude prices rising back above $94 a barrel. Also due to uncertainties between Russia and Ukraine, domestic stocks have struggled to maintain stability. U.S. futures fell after the release of FOMC meeting minutes, where Fed officials outlined plans for higher interest rates and said the unwinding of the bond portfolio could be aggressive . Continued sales by FII in the domestic market may increase investor caution in the near future. Crucial support for Nifty 50 is at 17,100 while Nifty may face some resistance at 17,550.”
Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities
“Today, the Indian market stabilized in a volatile trade. Investor sentiment remained cautious amid mixed global signals. We believe volatility is likely to linger for some time before concluding in a concrete direction, as geopolitical tensions and other macroeconomic developments are driving volatility across all major asset classes, including equities, debt and currencies. We believe this increase in volatility should be used by investors to build positions in quality large and mid-cap stocks as earnings expectations for Indian companies remain strong.
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