Markets falter in late selling as bears strike back after Tuesday's sharp rally
The broader Nifty was down 30.30 points or 0.17 percent at 17,322.20. /Representational image | ANI Photo
Markets remained in volatile territory as the roller coaster trading session finally ended with bears emerging winners due to late selling pressure. The index started the session on a positive note but wiped-out early gain and made an intraday low 17,257.70 at the level and closed the session at with a loss of 30.25 points. Bank Nifty closed the session at 37,953.80 level with a loss of 216.30 points. 33 out of Nifty 50 stocka closed in a red, indicating broad-based selling.
At close, the Sensex was down 145.37 points or 0.25 percent at 57,996.68. The broader Nifty was down 30.30 points or 0.17 percent at 17,322.20. About 1,958 shares have advanced, 1,309 shares declined, and 99 shares are unchanged.
Among sectors, selling was seen in the auto, metal, PSU bank, capital goods, while power, healthcare, oil and gas, and realty indices ended in the green. Among top losers on the Nifty were Power Grid Corporation, UltraTech Cement, NTPC, ICICI Bank and SBI. Gainers included Divis Labs, Adani Ports, ONGC, IOC and HDFC Life.
Only eight of the 30 scrips that are part of the Sensex closed in the positive. Bharti Airtel rose 1.41 percent to Rs 721.40. HDFC 1.29 per cent higher at Rs 2370; Mahindra & Mahindra 1.10 percent higher at Rs 864; Dr Reddy's Laboratories 1.04 percent higher at Rs 4320.05 and Kotak Bank 0.93 per cent higher at Rs 1829.45 were among the major Sensex gainers.
While the situation may have improved a bit in the Russia-Ukraine standoff, investors are taking a cautious route because of other concern areas like probable US interest rate hike and rising inflation, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. Technically, the Nifty failed to sustain above the 50 day SMA which is broadly negative. For the bulls 17,250 and 17,200 would be the key support zones whereas 17,500-17,550 would act as an important hurdle for the traders.
There was selling pressure in banking stocks. State Bank of India slipped 1.58 percent to Rs 516.35. ICICI Bank fell 1.39 percent to Rs 765.35. NTPC 1.63 percent down at Rs 133.15; Ultra Tech Cement 1.56 percent down at Rs 7177.30; Tata Steel 1.28 percent down at Rs 1192.05; Bajaj Finserv 0.96 percent down at Rs 16209; Bajaj Finance 0.91 percent down at Rs 7072.90 and L&T 0.90 per cent down at Rs 1860.10 were among the major Sensex losers.
Palak Kothari, Research Associate, Choice Broking said, On a daily chart, the index has taken resistance from a middle band of Bollinger as well as 50 DMA which suggests crossing above the same can show upside. On an Hourly Chart, the index has formed a bearish candle which suggests some correction can be seen in upcoming days. Moreover, the daily momentum indicator MACD is also trading with a negative crossover which adds weakness in prices. At present, the Index has support at 17,130 levels while resistance comes at 17,500 levels, crossing above the same show further upside rally. On the other hand, Bank Nifty has support at 37,600 levels while resistance at 38,500 levels.
FIIs net sellers
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 2,298.76 crore, according to stock exchange data
Emerging markets stocks up
Emerging market stocks eyed their best day in one week on Wednesday, while Russia's rouble gained for a third straight session, as fears of a Russian invasion of Ukraine waned. The rouble strengthened 1.1 percent against the dollar, recouping all of its declines from last week, which also saw global financial markets slammed by heightening geopolitical tensions between Russia and Ukraine.
Forex-Dollar slips
US dollar edged slightly lower on Wednesday as investors became less worried about the risk of Russia invading Ukraine and waited for the release of minutes from the US Federal Reserve's January meeting.
Asians stocks close with gains
lsewhere in Asia, bourses closed with significant gains as fears of a Russian invasion of Ukraine dissipated.
Crude falls
Global crude oil benchmark Brent Futures fell 0.19 per cent to USD 93.06 per barrel.
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