All the sectoral indices ended with a loss of 3-8 percent, while BSE midcap and smallcap indices shed over 5 percent each.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Investors turned jittery and pressed the panic button after reports emerged that Russia has taken military action against Ukraine. As the mood was sombre across the global equity markets, traders back home also followed suit and pressed the sell button, resulting in across-the-board selling. Also, the F&O expiry pressure also gave investors the reason to cut their position further due to escalating geo-politicial tensions.
Technically, after a long time, benchmark Nifty closed below the 200-day SMA and has also formed a long bearish candle on daily charts, which suggests further weakness from the current levels.
Considering the uncertainties hovering around, the index may trade lower between the highs of 16800 and 16,000. The market is in corrective mode and it would complete its corrective pattern between 16200 and 16000. For the traders, 16400 and 16500 could act as intraday resistance while 16100-16000 could be the immediate support zone.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities:
Nifty has broken significant support level 16600 and witnessed significant selling pressure in line with global markets. We believe volatility will remain elevated on account of an external shock and expect March series to witness further negative bias.
Though the bias is negative, we await derivatives data to establish objective levels before taking a strong positional stance from here on. Investors can use further deep corrections to buy/average and traders to define risk in uncertain times.
S Ranganathan, Head of Research at LKP securities:
With Brent crude breaching the USD 100 mark for the first time in 7 years post the Russian military operation in Ukraine, both the benchmark Indices wilted with a 5% cut as the volatility index rose 30% today with all sectoral indices ending deeply in the red wiping out over Rs 10 lakh crores of investor wealth.
A peep into the advance-decline ratio said it all as the carnage together with the volatility witnessed today was painful for both investors and traders.
Comentarios