Reliance, TCS drag Sensex 617 pts lower, Nifty support at 16800, analysts say more downside on cards

Reliance, TCS drag Sensex 617 pts lower, Nifty support at 16800, analysts say more downside on cards

BSE Sensex and Nifty 50 fell more than a per cent on Monday, owing to the high commodity prices, inflation worries, and rising Covid cases. BSE Sensex crashed 617 points or 1.08 per cent to end at 56,580, while NSE Nifty 50 was down 218 points or 1.27 per cent to settle at 16953. Index heavyweights such as Reliance Industries Ltd (RIL), Infosys, Tata Consultancy Services (TCS), ITC, and Tata Steel stocks contributed the most to the indices fall. India VIX, Nifty’s volatility index, which indicates the degree of volatility traders expect over the next 30 days in the Nifty50 index, jumped 15.82 per cent to settle at 21.26 levels. Bank Nifty was the only Nifty sectoral index which ended in the green. Broader markets underperformed frontline equity indices. S&P BSE Midcap index fell 1.9 per cent or 460 points to settle at 24,238.68, while S&P BSE Smallcap index was down 1.9 per cent or 549 points to finish trade at 28,699.

Palak Kothari, Research Analyst, Choice Broking

Rupak De, Senior Technical Analyst, LKP Securities

Nifty started lower and fell below 200days moving average which suggests a rise in bearish bet. The daily RSI is in bearish crossover. On the lower end, Nifty has support at 16800, a fall below 16800 may trigger a further fall in the market. On the higher end, resistance seen at 17200.

Kunal Shah-Senior Technical & Derivative Analyst, LKP Securities

The Bank Nifty index was the outperformer in yesterday’s trading session. The index near-term support is placed at 35800 and a breach below this will lead to a fresh round of selling. The upside resistance is placed at the 36500-37000 zone and a close above this will resume the uptrend.

Vinod Nair, Head of Research, Geojit Financial Services

Global markets were painted red due to below-par earnings results, adding fresh concerns to elevated inflation, oil prices, war uncertainties and supply issue. Fear of waning demand due to prolonged covid lockdown in China led to oil prices tumbling. Continued FII selling in India along with other global uncertainties is favouring bear trend in the short-term.

Mitul Shah, Head of Research, Reliance Securities

Domestic equities closed lower following weak global cues as concerns over worsening inflation have compelled investors to expect a faster rise in interest rates. The market is likely to remain volatile this week as traders roll over their positions in the F&O segment from the April series to May series. The next batch of Q4 results and management commentary, global stock market trends, and the movement of rupee and crude oil prices are likely to assess market sentiments in the near future. Moreover, the ongoing Russia-Ukraine crisis and sanctioning of Russian products would have high negative bearings on global and Indian equities.