Dalal Street Corner; Investors poorer by Rs10.40 lakh crore in 4 sessions; what should investor do on Tuesday?

Tracking global cues, domestic stock markets ended in the red on Monday as developments surrounding Russia-Ukraine continue to keep investors on edge. Benchmarks indices ended in the red for the fourth straight day as mid cap and small cap indices ended 1.24 and 2.73% lower on Monday. The Nifty 50 declined 70 points or 0.40% to 17,206.65, while the Sensex shed 150 points to end at 57,683.59 despite paring losses in the afternoon session and the two indices reclaiming 17,300 and 58,000-mark respectively.  

As the markets continued losing streak for the fourth day, investors got poorer by 10.4 lakh crore in the last four sessions. The market cap of BSE-listed companies declined y 2.62 lakh crore, 2.61 lakh crore, 2.60 lakh crore and 2.57 lakh crore on February 16, 17, 18 and 21 respectively. Combined together, the Sensex market cap saw a decline of 10.40 lakh crore in the last four sessions. 

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The 12-share banking index Bank Nifty gained 85 points to close near 37,700 as the index ended 0.23% higher.  

Except for banking and financial services, all sectoral indices closed in the red with Nifty Metal and Media declining the most. The former ended lower by 2.07% and the latter corrected 2.71% in a highly volatile trading session.  

Wipro and Infosys were top two gainers on Nifty and Sensex. Beside them, Shree Cement, Power Grid, HDFC Bank, ICICI Bank, Maruti, Nestle India, Axis Bank and Kotak Bank were other gainers.  

Sun Pharma, TCS, ITC, Tech Mahindra, Ultra Tech Cement, Hindalco, Divis Laboratories, Adani Ports and Sun Pharma were top losers.  

As investors got poorer by 10.40 lakh crore in the last four trading sessions, here is what market experts have to say about the market trend

Chandan Taparia | Vice President | Analyst-Derivatives | Motilal Oswal Financial Services Limited

Nifty index opened negative and drifted towards 17071 levels followed by recovery in the initial half of the day. However the latter part, it witnessed some pressure and it closed the day with losses of around 70 points. It failed to surpass its previous day’s high and has been making lower highs - lower lows from the last three sessions. It formed a High wave Doji sort of candle on daily frame with long wicks on either side indicating volatile cues. Now till it remains below 17350, weakness may be seen towards 17100 and 17000 zones whereas hurdles can be seen at 17400 and 17500 zones.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers

Indian markets opened in red tracking global cues as investors continue to monitor Ukraine crisis amid rising tensions of potential invasion keeping investors on the edge for second consecutive week. Traders took some solace with Crisil Research’s statement that India's industrial activity is expected to gather pace in the coming months owing to a gradual pick-up in consumption as well as investment demand. However, the relief rally couldn't hold long and markets drifted lower in closing session as fresh news over Ukraine crisis dampened the fragile sentiments.

Vinod Nair, Head of Research at Geojit Financial Services.

"Domestic indices started weak taking cues from negative global peers but in between recouped most of its losses on reports of likely meeting between Biden and Putin over the Ukraine issue. However, the market could not stretch the direction and turned negative as uncertainty in the global markets continued. Investors stood sidelined impacting volumes. The market is expected to be volatile due to the upcoming Fed meeting and state election results.

Palak Kothari Research Associate Choice Broking

On the back of global clues and SGX nifty, index opened on a negative note but showed the bounce back in the first half and made an intraday high at 17315.05 level, but couldn’t sustain it amid profit booking at the top level.

On a daily chart, the Index has formed a Doji kind of candle, which suggests confusion between buyer and sellers. On an hourly chart, the index has been trading with lower highs & lower lows formation, which points out a weakness for an upcoming session. Furthermore, the index has traded below the middle band of Bollinger, which suggests downside movement in the counter.

On a daily chart, the index has been trading below 21*50-DMA with the negative crossover, which suggests weakness for the next session. Moreover, the daily momentum indicator Stochastic & MACD were also trading with a negative crossover, which adds weakness in prices. At present, the index has support at 17000 levels, breaching below the same can show further downside till 16900-16800 levels, while resistance comes at 17500 levels. On the other hand, Bank nifty has support at 36800 levels while resistance at 38500 levels.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)