Indian markets extended decline for the third straight session on Wednesday, as HDFC twins – HDFC and HDFC Bank dragged the market most along with auto stocks. The BSE Sensex slipped over 237 points while Nifty50 settled above the 17450-mark at the close falling by 54 points or 0.3 per cent.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Sectorally, the selling pressure was seen in auto, banking, and financial stocks, while FMCG, metal and pharma witnessed buying interest on Wednesday at the close.

See Zee Business Live TV Streaming Below:

Of 50 scrips on Nifty50, 22 advanced, and 28 declined at the close. ONGC closed as a top gainer, nearly 3 per cent higher amid rising crude, followed by Apollo Hospital up over 2 per cent. On the flip side, Maruti along with HDFC twins were amongst the top laggards, down in the range of 2-2.5 per cent.

 Meanwhile, the mid and small-cap indices from broader markets closed mixed as the former ended flat with a negative bias and small-cap concluded around 0.2 per cent higher at the close. 

"Though the global markets have already factored higher levels of inflation owing to high fuel and food prices, the unfavourable numbers dampened investor sentiments, Vinod Nair, Head of Research at Geojit Financial Services said in his post market comment. 

“The ECB policy decision will be closely monitored for direction on how the Central bank plans to balance slowing growth and record-high inflation. With the onset of the earnings season, the market is likely to be buoyed by sector specific momentum,” he added. 

The stock market will remain shut on Thursday, April 14 on account of Dr. BR Ambedkar Birth Anniversary and Mahavir Jayanti, and on Friday, April 15 on account of Good Friday.  

We have collated views from different experts as to what investors should do when trading resumes: 

Expert: S Ranganathan, Head of Research at LKP securities. 

Capital Goods stocks were most sought after today on expectations of a revival in Capex spending. March exports rising 20 per cent boosted sentiments even as the street remains cautious on rising inflation and commodity prices and their impact on the earnings of companies.  

Expert: Rupak De, Senior Technical Analyst at LKP Securities. 

Nifty remained volatile with a largely negative bias throughout the session. On the lower end, the index challenged the support levels of 17400-17450. On the higher end, it failed to sustain above 17600. Going ahead, the weakness may continue.  

Crucial support is seen at 17400, below which a serious correction in the market may be witnessed. On the higher end, resistance is visible at 17600/17800. 

Expert: Kunal Shah - Senior Technical & Derivative Analyst at LKP Securities.  

The Bank Nifty index saw fresh short position built up in the future segment indicating weakness. The index however is stuck in a broad range between 37,000-38,000 and a breach on either side will result in trending action. The index if breaches 37,000-marl next week will open room for further downside towards 36,000 level. 

Expert: Mr. Ajit Mishra, VP - Research, Religare Broking Ltd 

We have a long weekend ahead and markets will react to two major earnings that are Infosys and HDFC bank on Monday, April 18, 2022.  Besides, any major development on the global front in the next four days would also impact the sentiment.  

On the index front, Nifty is currently respecting the first line of defense which is 20 EMA on the daily chart around 17,400 and its breakdown can push the index to the 17,250-zone. In case of a rebound, the 17,650-17,750 zone would act as an immediate hurdle. We suggest preferring hedged bets and maintaining a focus on stock selection.