Sensex, Nifty end in red for fifth consecutive day; have markets now reached the bottom?

Domestic benchmark indices slipped into the red, after having begun the day’s trade in the positive territory. S&P BSE Sensex closed just above 49,200 while the 50-stock NSE Nifty ended down 1.11% at 14,557. The fall was led by IT stocks like HCL Technologies and Infosys, followed by index heavyweights like Reliance Industries. ICICI Bank, Kotak Mahindra Bank, HDFC Bank were also among the laggards. Volatility had inched higher during the day but as Sensex and Nifty recovered from intra-day lows, India VIX fell and closed below 20 levels. 

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Deepak Jasani, Head of Retail Research, HDFC Securities –

“Indian benchmark equity indices ended lower in the fifth straight session on March 18. Nifty has closed at the lowest since Feb 26, though in terms of intra-day low it has gone below even that. Indian markets continue to perform the worst in the region as the resurgence of Covid-19 has led to fears of the momentum in the economy slowing down. A close below 14529 would mean that the Nifty is in the midst of an intermediate correction. 14281-14478 could be the support band for the Nifty while 14639-14696 could provide resistance.”

Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services –

“Nifty and Sensex were down 1.25 % today despite positive statements by US Fed on the interest rate outlook and continuance of accommodative policy. The Indian market has been in a corrective phase for the past 10 days, due to factors like high bond yields in the US, a slew of QIPs and IPOs taking away liquidity from the system and increased no of covid cases being reported across the country. The market may remain dull over in the near term but once the Q4 earning previews start flowing in there would be renewed interest by market participants.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Indian equities pared its early optimism and fell into a sharp correction as US bond yield rose to its highest level since January. Dovish comments from the Fed chief on the strong economic bounce back and continuation of its accommodative stance, could not weigh down the rally in the US bond market.  Indian markets had witnessed higher volatility compared to its global peers as domestic investors turned extra cautious on increasing Covid cases in India & a fall in FII inflows.”

Ajit Mishra, VP – Research, Religare Broking –

“Markets swung both ways and finally ended with a cut of more than a percent. The benchmark witnessed gap up opening on the back of positive global cues as the US Fed kept the interest rate unchanged and maintained the dovish stance, which boosted the investors’ sentiment. However, the gains fizzled in the latter half, citing profit-taking in the global markets and continuous rise in the COVID cases. With all the major events behind us, global cues and COVID updates will dictate the trend. Nifty tested the critical support at 14,500 today and its breakdown will pave the way for further decline. Traders should maintain extra caution and limit leveraged positions.”

Manish Shah, Founder, Niftytriggers –

“Nifty has shown six red candles in a row as Nifty has declined for five consecutive days of lower close. Nifty does now seem to be getting stretched on the lower side and we can expect a bounce bank that may last for a couple of days. Nifty dipped below it is fifty period moving average and though index has traded below we need to be careful as this may only be a temporary decline and the Nifty could turn higher. When we look at price action we see a range-bound action and this could be a rectangle a possible continuation pattern. If the support a 14350-14450 holds should be seeing a rally to 15250. Buy at support could be the best reward to risk trade that a trader can hope for.”