Markets take a breather after 3-session rally as weak global cues weigh on sentiment

The benchmark stock market indices closed in the red on March 31 after opening trading session flat in lacklustre trading dragged down by profit-taking in Reliance Industries, Infosys and HDFC Bank. After a three-day winning strike, the index closed the session on negative note with a loss of over 30 points.

The 30-share barometer declined by 115.48 points or 0.20 percent to settle at 58,568.51 in choppy trade due to the expiry of monthly derivatives contracts. During the day, it touched a high of 58,890.92 and a low of 58,485.79.

For the fiscal 2021-22, the BSE Sensex jumped 9,059.36 points or 18.29 per cent, while the Nifty rallied 2,774.05 points or 18.88 per cent.

The broader NSE Nifty declined by 33.50 points or 0.19 per cent to settle at 17,464.75.

Among the sectors, Pharma and FMCG and Media indices ended up by more than 1 percent each while Pharrma, IT, and Metal ended in red. Among the 30-share pack, M&M, Hindustan Unilever Limited, Axis Bank, IndusInd Bank, Bharti Airtel, ITC and Titan were among the lead gainers. In contrast, Reliance Industries Limited, Wipro, Dr Reddy's, UltraTech Cement, Infosys were among the major laggards.

In the previous trade, the 30-share BSE barometer index surged 740.34 points or 1.28 per cent to settle at 58,683.99. Similarly, the NSE Nifty climbed 172.95 points or 1 per cent to settle at 17,498.25.

Technically, the index showed profit booking from higher level but managed to close above the horizontal level i.e 17,400 sustained above the same suggested upside movement, said Palak Kothari, Research Associate, Choice Broking. Moreover, the Index has tested the 61.8 percent RL of its previous move and closed above the same which suggests overall strength in the counter. The index has been trading with the support of the middle band of Bollinger which confirms the strength in the counter. However, the momentum indicator STOCHASTIC in trading with positive crossover on daily charts which indicates upside movement can be seen. Furthermore, the index has managed to close above 21-HMA sustained above the same can show northward direction. The Nifty may find support around 17,400 levels while on the upside 17,600 may act as an immediate hurdle for the index. On the other hand, Bank nifty has support at 35,800 levels while resistance at 36,800 levels.

Investor follow global market cues

Investors followed global market cues, which were mostly weak as most of them had rallied in the last few sessions on fall in crude oil prices and expectations of some solution to the Russia-Ukraine conflict, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. After seeing sharp gyration during the week, investors exercised caution with a negative bias on the expiry day. Technically, after a promising uptrend move, Nifty is currently witnessing a narrow range activity and has formed a small bearish candle near the important resistance level. However, the short-term texture of the market is still on the positive side. For the positional traders, 17,400 and 17,350 would act as key support levels. Above the same, the index could touch the level of 17,600-17,675. On the flip side, below 17,350, the uptrend would be vulnerable.

Mohit Nigam, Head - PMS, Hem Securities, said, Some buying was witnessed in Oil & gas, auto and banking names while selling pressure is witnessed in pharma sector. Immediate support and resistance in Nifty 50 are 17200 and 17700 respectively. Immediate support and resistance in Bank Nifty are 35700 and 37000 respectively.

Asian stocks close lower

Elsewhere in Asia, equity exchanges in Shanghai, Tokyo and Hong Kong ended lower, while Seoul settled with gains. Markets in Europe were mostly trading lower.

Stock exchanges in the US ended on a negative note in the overnight session.

Crude prices tumble

International oil benchmark Brent crude tumbled 5.09 per cent to $107.68 per barrel on reports that the US was considering releasing a record 180 million barrels of oil from strategic reserves.

FIIs buyers

Foreign Institutional Investors (FIIs) were buyers as they bought shares worth Rs 1,357.47 crore on net basis on Wednesday, according to stock exchange data.