Dalal Street Corner: Volatility, profit booking, market decline 2nd day in a row; What should investors do on Friday?

Indian markets ended slightly lower for the second day on selling pressure in banking stocks, consumer durables and oil and gas and worries surrounding the Russia-Ukraine crisis. The benchmark Nifty index closed down 0.10% as 17 stocks rose and 13 fell on the 50-stock index.

Similarly, the Sensex barometer also lost over 100 points to end below 58,000, as 12 stocks gained, while the other 18 ended in the red.

Bank stocks fell the most, with ICICI Bank, IndusInd Bank, Axis Bank, State Bank of India and HDFC Bank among the top losers on Thursday. HDFC Limited, Hindustan Unilever, Tata Consumers, ONGC, Reliance, HDFC Life, Power Grid, Tech Mahindra and L&T were among the top winners on Thursday.

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In the broader market, mid and small cap indices corrected by up to 1%, while the pharmaceutical, media and healthcare sectors came under enormous pressure.

Experts place crucial support for Nifty around 17,100 and resistance is seen at 17,500.

We have collected the views of market analysts who talk about the current market trend and suggest what investors should do in the future.

Ruchit Jain, Head of Research, 5paisa.com

Nifty started the day slightly positive, but witnessed some selling pressure led by banking and financial stocks. The index was unable to see any sustained intraday pullbacks and it eventually ended with a loss of around a quarter of a percent.

Traders are alert to the development of the Russia Ukraine cross-border issue which is leading to greater volatility. On the index front, 17100-17000 will be seen as the immediate support range while 17500 is the resistance. We may continue to see higher volatility in this wide range while a break either side beyond the mentioned limits will lead to the next directional move. Until the index gives a clear break, we continue to advise short-term traders to avoid aggressive positions and trade with proper risk management.

Mohit Nigam, Manager – PMS, Hem Securities

Benchmarks posted losses for the second consecutive session, led by banks, consumer durables and oil and gas stocks. This is due to US futures falling and crude prices rising back above $94 a barrel. Additionally, due to uncertainties between Russia and Ukraine, domestic stocks have struggled to maintain stability.

U.S. futures fell after the release of FOMC meeting minutes, where Fed officials outlined plans for higher interest rates and said the unwinding of the bond portfolio could be aggressive . Continued sales by FII in the domestic market may increase investor caution in the near future.

Crucial support for Nifty 50 is at 17,100 while Nifty may face some resistance at 17,550.

Palak Kothari Research Associate Prime Brokerage

On the technical side, the index traded with lower highs and lower lows, indicating weakness for an upcoming session. Additionally, the index traded below the middle Bollinger Band, suggesting a bearish move in the meter. On a daily chart, the index traded below 21*50-DMA with the negative crossover suggesting weakness for the next session.

Additionally, the Stochastic & MACD Daily Momentum Indicator was also trading with a negative crossover which adds weakness to prices. Currently the index has support at the 17130 levels, a breach below this level may show further decline to the 17000-16800 levels while resistance comes in at the 17500 levels. shares, Bank nifty has support at 36800 levels while resistance at 38500 levels.

Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities remained volatile as uncertainty lingered around the Ukraine-Russia scenario as well as the weekly index expiry. Nifty opened positive but could not hold higher levels and dipped into the red.

The index saw wild swings before ending the day with a minor loss of 18 points at 17,305 levels. The broader market underperformed and closed with a loss of 1%. With the exception of FMCG and Oil & Gas, all other sectors ended in the red, with Nifty Bank leading the way down 1%. India’s VIX rose 6.9% to 22 levels.

Global markets remained jittery after geopolitical tensions flared between Russia and Ukraine. On the positive side, the Fed minutes indicated that while the central bank intends to start raising interest rates soon, its decisions would depend on the data.

Stock markets have seen a spike in volatility over the past two days due to variable news flows from the Ukrainian border. Nifty has traded in a wider range of 16,800-17,400 and needs a decisive break on either side for clear direction. For now, investors will have to navigate their way through the Ukraine crisis and the rising rate environment to stay the course.

Vijay Dhanotiya, Head of Technical Research at CapitalVia Global Research Limited

The market saw another volatile move and an attempt to hold the market above the 17200 levels. Market research suggests that holding above 17200 will be an important level for the market to remain positive in the near term. If the market holds above the support levels, we expect the market to rally. We have been watching momentum indicators like RSI and MACD indicating a positive rally in the market.

(Disclaimer: Opinions/suggestions/advice expressed here in this article are investment experts only. Zee Business suggests its readers consult their investment advisors before making any financial decisions.)