The Indian stock market witnessed a significant downturn as the Nifty plunged below the crucial 22,350 mark, signaling a bearish trend. Explore expert insights and analysis on this market movement to gain valuable perspectives for your investment decisions.
The Indian stock market witnessed a downward trend on March 11, with the benchmark indices ending lower, as the Nifty slipped below the crucial 22,350 mark. At close, the Sensex was down 616.75 points or 0.83 percent at 73,502.64, and the Nifty was down 160.80 points or 0.71 percent at 22,332.70. Let’s delve into the expert analysis to understand the implications of these movements.
Ajit Mishra, SVP – Technical Research, Religare Broking:
Mishra points out that markets started the week with a cut, losing over half a percent amid mixed cues. He observes that Nifty gradually inched lower throughout the session, settling around the day’s low at the 22,332.65 level. Mishra highlights the underperformance of broader indices and suggests traders to avoid aggressive longs and prefer a hedged approach in the current scenario.
Jatin Gedia – Technical Research Analyst, Sharekhan by BNP Paribas:
Gedia notes that the Nifty opened flat and drifted lower as the day progressed, closing down approximately 160 points. He emphasizes the lack of follow-through buying interest after a decisive breakout, indicating selling pressure at higher levels. Gedia predicts a range-bound price action going ahead, with crucial support at 22,224 – 22,167 and immediate resistance at 22,530 – 22,600.
Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities:
Shah highlights the resistance faced by the Bank Nifty index from bears at higher levels, leading to a downside move. He identifies immediate support levels at 47,000-46,800 and emphasizes the need for a decisive close below this range to intensify selling pressure. Shah suggests that to resume the uptrend, the index must surpass the mark of 47,700.
Rupak De, Senior Technical Analyst, LKP Securities:
De observes that Nifty has been fluctuating within an ascending channel, displaying a pattern of higher highs and higher lows, indicating a bullish trend. However, he predicts a short-term weakness, possibly leading to a decline towards the range of 22,200-22,250, with immediate resistance at 22,400 based on closing prices.
Prashanth Tapse, Senior VP (Research), Mehta Equities:
Tapse attributes the steep losses in the market to weak global cues and uncertainty over global interest rate cuts. He notes that investors are cutting their exposure to banking, telecom, power, and realty stocks due to volatile market conditions. Tapse highlights the influence of global factors such as geopolitical tensions and sluggish growth in key economies on market sentiment.
Vinod Nair, Head of Research, Geojit Financial Services:
Nair comments on the continued selloff in global markets due to uncertainty over rate cuts, impacting domestic market sentiment. He points out that investors are rebalancing their portfolios to include safe-haven assets like gold amid valuation concerns in the broader market.
In addition, the Indian rupee ended flat at 82.76 per dollar versus the previous close of 82.78, indicating stability in the currency market amidst market volatility.
In conclusion, the Indian stock market witnessed a downward trend on March 11, with the Nifty slipping below 22,350. Expert analysis suggests caution in trading strategies amid volatile market conditions and global uncertainties. Investors are advised to stay informed and adopt a hedged approach to navigate through these challenging times.
