Indian stock markets ended flat today after a volatile session. The blue chip NSE Nifty 50 index added 0.12% to close at 14,956, after rising to 15,111 at day’s high. The benchmark S&P BSE Sensex gained 0.07% to close at 50,441.07. Both indexes had gained as much as 1.2% earlier in the session. Market sentiment also tracked global shares, which were mixed as initial optimism over the U.S. Senate’s passing of a $1.9 trillion stimulus bill gave way to inflation fears.
“Nifty has started the week on a weak note giving up the early gain mainly due to weak Asian cues later in the day. Nifty is repeatedly facing selling pressure from 15100-15200 band. So far 14862 level has provided support. A breach of this level could take the Nifty to 14637-14725 band,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
The rupee on Monday declined by 23 paise to close at 73.25 against the US dollar, extending its losses for the third session in a row due to rising crude oil prices and strengthening of the American currency in the overseas market. The dollar rose to a three-and-a-half month high against a basket of six currencies globally helped by passage of USD 1.9 trillion stimulus package by the US Senate, positive jobs data and rising bond yields.
The Nifty Financial Services Index closed 0.37% lower, dragged down by HDFC Ltd, which fell 1.3%. The Nifty IT index, which rose 3.82% last week, continued to add to its gains, closing 0.47% higher.
Here is what analysts said on today’s market performance:
Subash Gangadharan, Senior Technical & Derivative Analyst, HDFC securities
“Technically, the Nifty seems to be trading in a range. Further directional cues are likely to emerge on a move beyond the 14862-15111 range. A close below 14862 is likely to lead to a correction towards the 50 day SMA which is currently at 14610. On the upside, crucial resistances to watch for signs of strength are at 15203.”
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
“Technically, Nifty formed a small Bearish candle on daily scale with long upper shadow which indicates limited upside with absence of direction. Now, it has to cross and hold above 15000 to witness an up move towards 15150-15250 while on the downside immediate support exists at 14800-14700 levels. India VIX fell down by 3.5% to 24.67 levels. VIX is turning highly volatile in broader range of 21.80 to 29.64 from last ten trading sessions. Cool down in VIX below 21-20 zones is required for bullish grip.”
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
“As expected, the markets have been trading sideways all day. We were not being able to get past 15300 or break fiercely below 14800. A trigger of either level will pave the way for the next rally up or down. Until then traders would be advised to tread cautiously with strict stops.”
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
“Highly volatile global markets are weighing heavy on our markets. However, this is a corrective pattern to the vertical rally that all indices across the world witnessed between 1st February to 16th February 2021. Today, Asian markets failed to hold initial gains and our markets also fell from the highs. We can see further fall in the market until indices cross 15280/51540 levels. On Tuesday, Nifty/Sensex would find the support between 14860/14890 (50150/50200) levels, however, on the dismissal of 14860/50150, indices could fall to 14730/50000 or 14650/49500 levels. The focus should be on the Oil & Gas related stocks.”