Indian equity markets bounced back sharply off intraday lows in a highly volatile session and ended around flat line on Monday. The reversal came as US Futures indicated a positive start on Wall Street later today. The S&P BSE Sensex ended at 56,976, down 85 points or 0.15%, while the NSE Nifty 50 closed at 17,069, down 33 points or 0.21%. Sectorally, the Nifty Metal and private bank indices were the top gainers on the NSE, up 0.5% each. Meanwhile, the Nifty IT, down 1.5%, was the worst hit. Nifty Bank ended 75 points or 0.21% higher at 36,163. In the broader markets, the BSE MidCap and SmallCap indices closed 0.45% and 0.8% down, respectively. Market volatility is likely to continue in coming days due to recent hawkish turn by US Fed. Investors must limit positions and continue with stock-specific trading approach,” according to analysts.
Vinod Nair, Head of Research at Geojit Financial Services
“The recent hawkish turn by Fed has made investors extra cautious ahead of the upcoming Fed meeting triggering high volatility in the market. The rising dollar index, FII selling spree and elevated commodity prices further hammered the risk sentiment. On the other hand, domestic numbers like GST collection, auto sales numbers and Manufacturing PMI for the month of April gave a sense of an improving economic outlook.”
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
“Early losses were mostly in reaction to the slump seen on Wall Street on Friday, but markets recovered most of its early losses as investors covered some shorts ahead of the trading holiday on Tuesday. The robust GST collections for April also calmed the nerves of investors, who are already facing the brunt of the ongoing war and volatile oil prices. Investors are also keenly awaiting the outcome of the US Fed’s monetary policy announcement scheduled later this week. The Nifty is holding above the level of 16800, but at the same time, it is failing to show a sustained momentum. In short, the market is consolidating within a broad trading range of 17400 and 16800. We may not see any trending move in the market unless it crosses the 17400 level or breaks the 16800 level. A close below the same will be negative for the market. Also, the volatility index is well above the 20 level, which is an indication that the market is about to break the trading range in the near future.”
Rupak De, Senior Technical Analyst at LKP Securities
“Nifty remained below 200DMA even after a recovery from a gap down open. However, the index managed to sustain above the support zone of 16800-16850. Going forward, the indecisiveness may rule the market as market participants await fed policy. On the lower end, support zone 16800-16850 is likely to remain intact. On the higher end, resistance is visible at 17200”
Sumeet Bagadia, Executive Director, Choice Broking
“Benchmark Indices kicks off a fresh month with sluggishness following the global cues. Sensex settled at 56975.99 losing 84.88 points or 0.15% while Nifty wiped out 33.45 points ended at 17069.10 or 0.20%. Throughout the day index traded in a tight range but at the end of the day banking stocks showed some recovery from intraday low, keeping the 17000 level on the safe side. INDIA VIX jumped 4.43% intraday settled at 20.28 indicating volatility going to stay in coming days. Coming to the OI Data, on the call side highest OI witnessed at 17300 followed by 17500 strike price while on the put side, the highest OI was at 16800 followed by 17000 strike price. Closing above 17300 would define a clear trend for taking a long position. At present, the index is having support at 16900 followed by 16800 levels while resistance is placed at 17300 levels. On the other hand, Bank nifty has support at 35500 levels while resistance at 36800 levels.”
Ajit Mishra, VP – Research, Religare Broking
“Markets traded lackluster and ended marginally lower amid mixed cues. Initially, weak global cues triggered a gap-down start however better than expected results from the HDFC coupled with recovery in the global indices trimmed losses as the day progressed. Markets managed to rebound amid the weak global setup which shows that bulls are not in the mood to surrender easily. However, the real test would be to handle the volatility post the US Fed meeting. Meanwhile, the domestic factors like earnings and macroeconomic data would further add to the choppiness. It’s prudent to limit positions and continue with stock-specific trading approach.”
Mohit Nigam, Head – PMS, Hem Securities
“Benchmark Indices pares early losses after gap down opening on the back of weak global cues. Nifty 50 ends 0.20% lower and Sensex ends 0.15% lower today. Selling is witnessed in Auto and IT space while some buying was witnessed in banking, metal and realty names. We believe that this volatility would likely to continue in the markets due to recent hawkish turn by FED. Some of the factors that are taking indices below are FII selling, rising commodity prices, rising dollar index while some factors that are positive for the markets include GST collection, auto sales and manufacturing PMI. Immediate support and resistance for Nifty are 16,700 and 17,200 respectively. Immediate support and resistance for Bank Nifty are 35,500 and 36,500 respectively.”
