The benchmark indices ended negative due to geopolitical tension and global markets. The Nifty opened on a negative note and made an intraday low at 16478.50 levels, but in the dying hours it bounced back. The Bank Nift closed the session at 35,372.80 level with a loss of 832.50 points.
The Sensex declined 689.78 points or 1.23 percent at 55,557.50. The Nifty plunged 165.10 points or 0.98 percent at 16628.80. About 1,642 shares have advanced, 1,537 shares declined, and 101 shares are unchanged.
On the sectoral front, Nifty Metal, Energy and commodities ended on a green note, while bank and auto index are down 2-3 percent. Stocks like, Coal India, HDFC Life, Tata Steel, and SBI Life were the top gainers while Maruti, Dr Reddy, Bajaj Auto, and Asian Paints were the prime laggards.
Maruti was the top loser in the Sensex pack, shedding 6 percent, followed by Dr Reddy's, Asian Paints, ICICI Bank, HDFC and HDFC Bank.
Palak Kothari, Research Associate, Choice Broking, said, "Technically, Index has formed a Doji kind of candle on a daily time frame which suggests confusion between buyers & sellers. On an hourly chart, the Index has formed an Open Bullish Marubozu candle which suggests upside movement can be seen. Moreover, the Index has faced resistance from the falling trendline as well as 21-HMA crossing above the same can show upside movement."
The index has tested the physiological level of 16,500 levels and showed bounce from there crossing above 16,700 can show further upside. The Nifty may find support around 16,450/16,300 levels while on the upside 16800 may act as an immediate hurdle for the index. On the other hand, Bank Nifty has support at 34,800 levels while resistance at 36,400 levels, he added.
Investors have to be a little cautious as the near-term seems a little uncertain but we have a positive outlook on Indian equities in the long term and believe that one should incrementally invest in every dips, said Mohit Nigam, Head - PMS, Hem Securities. On the technical front 16,400 and 17,000 are immediate support and resistance in Nifty 50 respectively. For Bank Nifty 34,800 and 36,100 are immediate support and resistance respectively.
The continuing war between Russia and Ukraine has forced investors not to take bullish bets till the time the raging war subsides, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. The Nifty has maintained a lower top formation while on daily charts, it has formed a bullish Harami candlestick formation which supports a pullback rally. The short-term texture of the market is weak and a fresh rally is possible only after the index breaches 16,680. Above the same, the index could rally up to 16,750-16,800 levels. However, as long as the index is trading below 16,650, the chances of hitting 16,550 and 16,500 are bright, Chouhan added.
The street will now spy with one big eye on the comments from FOMC Chairman Jerome Powell who will testify this evening before the US House Committee on Financial Services, said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd. The street will be keen to know whether the Russia-Ukraine conflict will affect the central bank’s monetary policy plans.
Santosh Meena, Head of Research, Swastika Investmart Ltd., said, Short-term traders should stay light amid lots of uncertainties where 16200 should be their trading stop loss for long positions. Investors should focus on the domestic economy facing sectors like capital goods, infrastructure, real estate, banking, etc. IT sector may continue to do well where ongoing correction is an opportunity to add some quality stocks. The auto sector is also providing favorable risk-reward opportunities after a period of underperformance.
US to close airspace to Russian planes
US President Joe Biden announced that the United States is closing its airspace to Russian planes, asserting that this along with other punitive measures would weaken Moscow.
The US and EU have imposed various sanctions on Russia. These include curbs on Russia's biggest banks and excluding its financial institutions from the SWIFT global payments system.
FIIs on selling spree
Continuing their selling spree, foreign institutional investors sold shares worth Rs 3,948.47 crore in the Indian capital market on Monday, exchange data showed.
Crude oil price soars to $113 a barrel
Brent crude oil price soared to $113 a barrel on Wednesday, the highest level in nearly eight years, due to disruptions in supply amid escalating Russia-Ukraine tensions.
Brent crude oil price surged to $113.02 per barrel in London. Brent crude, also known as London Brent, makes up more than half of the world's globally traded supply of crude oil. West Texas Intermediate (WTI) crude oil price jumped to $111.50 a barrel.
Crude oil prices have spiralled in the last one week after Russian President Vladimir Putin ordered a military operation in Ukraine.
The tensions between Russia and Ukraine are escalating with each passing day. Russia has continued bombardments of Ukrainian cities. Western countries, led by the United States, have tightened sanctions on Russia.
European stocks slide for third day
European stock markets fell on Wednesday as rising commodity prices stoked inflation worries at a time when crippling sanctions against Russia over its invasion of Ukraine have dented risk appetite.
The pan-European STOXX 600 index had dropped 0.5 percent by 0811 GMT, entering its third straight session of losses. Europe's oil & gas index jumped 1.6 percent due to a near 7 percent surge in crude prices, with Brent crude soaring past $110 per barrel for the first time since 2014, Reuters said.
The US10-year yield was at 1.7258 percent, having dropped sharply in the previous two sessions. SPDR's Lesne said exchange-traded fund (ETF) flows in the United States rose last week as investors used them to take risk-off positions, but in Europe flows were "more muted." Lesne said he had not suspended any funds with exposure to Russia.
Russian rouble plunges to new low in Moscow
The rouble plunged to a record low in Moscow of 110 to the dollar on Wednesday and the stock market remained closed as Russia's financial system staggered under the weight of Western sanctions imposed over Moscow's invasion of Ukraine, Reuters said.
The rouble was 7.3 percent weaker on the day at 108.60 against the dollar as of 0941 GMT in Moscow trade, earlier hitting 110.0, an all-time low. It has lost about a third of its value against the dollar since the start of the year. It had shed 7.1 percent on Wednesday to trade at 120.50 to the euro.
The US dollar index was up 0.5 percent, having touched its highest since mid-2020, as investors sought safer assets. The euro was down 0.5 percent at $1.1068, and hit a new seven-year low against the Swiss franc.
Russia's largest lender Sberbank said on Wednesday it was quitting almost all European markets, blaming big cash outflows and threats to its staff and property following Russia's invasion of Ukraine and Western sanctions.
(With inputs from Reuters)
