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Monday Mayhem: Sensex crashes over 1900 points! Is there more pain ahead?

Monday Mayhem: Sensex crashes over 1900 points! Is there more pain ahead?

What's next? Has the bull run ended? Is there more pain ahead? Here's what experts say.

Monday Mayhem: Sensex crashes over 1900 points! Is there more pain ahead? Monday Mayhem: Sensex crashes over 1900 points! Is there more pain ahead?

The domestic equity market declined for the fourth straight day as the ongoing concerns on the Russia-Ukraine conflict coupled with soaring crude oil prices continued to weigh market sentiment.
 
Sensex ended 1491 points lower at 52,842 and Nifty slipped 382 points to 15,863 amid weak global cues. What's next? Has the bull run ended? Is there more pain ahead? Here's what experts say:
 
Mohit Nigam, Head - PMS, Hem Securities
 
Local equities markets have succumbed to selling pressure and are currently down over 2 per cent, dragging the Sensex and Nifty below critical levels of 53,000 and 15,900, respectively.
 
Concerns about the Russia-Ukraine conflict, as well as rising crude oil prices, drove the markets lower. Oil prices increased by more than 6 per cent, reaching their highest level since 2008, as the US and its European allies consider imposing a Russian oil import ban, while delays in the prospective return of Iranian petroleum to global markets exacerbated supply concerns.
 
Foreign portfolio investors (FPIs) withdrew a total of Rs 17,537 crore from Indian markets in just three trading days in March. All Asian markets were trading down on the global front, reflecting a drop in global equity markets amid increasing commodity prices and a worsening Russia-Ukraine crisis. During the continuous market turmoil, inflation fears prompted a rush for safe-haven assets, pushing the global gold price to $2,000 per ounce today.
 
On the technical front, immediate support and resistance in Nifty 50 are 15,700 and 16,200 respectively. Bank Nifty immediate support and resistance are 32,400 and 35,000 respectively.
 
Sachin Gupta, AVP, Research, Choice Broking
 
The domestic market extended the losses in Monday's session as prospects of the US and its allies imposing sanctions on Russian oil exports. Technically, the nifty index has formed a Doji candlestick on the daily time frame that suggests indecisiveness among the trades.
 
However, the index has closed below the Lower Bollinger Band formation and psychological levels of 16,000. An indicator RSI & Stochastic is trading near the oversold territory. At present, Nifty has immediate support around 15,700 levels while on upside the resistance comes around 16,000 levels. On the other hand, Bank nifty has support at 32,100 levels while resistance at 34,000 levels.
 
Rahul Sharma, Equity 99
 
The uncertainty continues due to current crisis between Russia and Ukraine along with increasing crude oil rates. Investors are advised to retain liquidity and avoid taking new position in market till things are clear.
 
Nifty 50 - For Nifty 50 15,780 will act as very strong support on breaking which we might see 15,700 levels and if this level is also breached than next stop will be around 15,620 levels. On upper side 15,940 will act as very strong resistance, If Nifty goes beyond these levels than next stop will be around 16,150, which if broken will take markets to 16,240 levels.
 
Bank Nifty – For banking index 32,630 will act as very strong support, if this level is broken than next support will be at 32,380 levels, on breaking which 32,000 level is possible. On upper side 33,100 will act as strong hurdle for banking index, if this level is broken than next strong resistance is around 33,265, post which 33,500 levels are possible.
 
Pankaj Pandey, Head – Research, ICICI Direct
 
The global as well as Indian equities continue to witness correction amid the ongoing Russia Ukraine conflict and concerns over economic costs of  war and subsequent sanctions on global economies with key concern right now being sharp rise in crude prices.
 
If crude prices sustain at higher levels, it is likely to impact India's current account deficit as well as fiscal deficit as India imports more than 80 per cent of its total requirement.
 
On the equity market outlook, while we believe volatility will remain in the near term till there is clarity over cessation of this attack, the recent correction gives an opportunity to the long term investors to load up on quality companies with sustainable growth visibility.
 
In the near term, Metals, IT, Pharma would be the key resilient sectors. On the medium term, we continue to remain constructive on domestic capex linked capital goods and allied  space and PLI oriented domestic manufacturing plays.
 
Aniruddha Naha, head equities, PGIM India Mutual Fund
 
Investors need to understand their asset allocation strategy and allocate available cash to be invested over a longer period of time. The markets have seen a decent correction, especially in midcaps and small caps.
 
We do not take any big cash calls and are using this opportunity to invest in businesses that have strong cash flows, decent balance sheets and are available at reasonable valuations.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

Since as of now we are not expecting Nifty to go below 15500 – 15200 in the worst case scenario, we would advise traders to avoid aggressive shorts from hereon. In fact, now it’s the opportunity for investors to start nibbling in with a broader view and for traders, one should remain stock specific.

All this while, we were firm on our bearish stance but from hereon we would like to adopt ‘One step at a time’ strategy and would focus on momentum based trades during the day. 

As far as levels are concerned, 16,000 followed by 16,200 are to be seen as immediate hurdles; whereas on the lower side, 15,700 is to be seen as immediate support. In case of any further escalation globally, we would see Nifty entering our mentioned sacrosanct support zone of 15,500 – 15,200.

 
 

Published on: Mar 07, 2022, 4:27 PM IST
Posted by: Tanya Aneja, Mar 07, 2022, 4:25 PM IST