Dalal Street Corner: Benchmarks extend losing streak on 2nd day despite banking, auto stocks make last minute recovery; what should investors do on Tuesday?

The domestic equity markets ended on a negative note despite banking stocks made a last-minute recovery as auto stocks also attracted some buying interest on Monday. The Nifty Bank and Private Bank managed to close in the green after initial drubbings, while Bajaj Auto led the Nifty50 pack with over 2% gains on Monday. It was closely followed by HDFC Bank, ICICI Bank and Kotak Bank, clearly showing some buying interest in auto and banking stocks.  

Benchmarks Nifty50 and the Sensex dropped 1.27% and 1.08% respectively amid weak global cues to settle at 16,953.95 and 56,579.89 respectively. 

Underperforming benchmarks, Nifty midcap and smallcap indices ended 1.9 and 2.4% lower amid India Volatility Index shooting up to 21-mark.  

The 12-share Nifty Bank bounced back as last moment buying interest saw the banking index ending higher by 38 points to around 36,000-mark.   

As the market continued its southward journey on Monday, we have collated views of experts who read about today's fall and suggest how the market is likely to perform going forward.  

Vinod Nair, Head of Research at Geojit Financial Services 

Global markets were painted red due to below-par earnings results, adding fresh concerns to elevated inflation, oil prices, war uncertainties and supply issue. Fear of waning demand due to prolonged covid lockdown in China led to oil prices tumbling. Continued FII selling in India along with other global uncertainties is favouring bear.  

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas 

Nifty had attempted a leap in the last week in order to fill up a gap area on the daily chart. The index faced a fresh round of selling near the upper end of that gap area from where the index started sliding again. The Nifty continued to roll down on April 25. It has again created a gap area on the daily chart today, which is near 17054 – 17149. This will now act as a near-term resistance zone & any attempt to fill up this gap area can be treated as a fresh shortening opportunity. The overall structure suggests that the index is likely to stay on the downward trajectory for the short term & is expected to break the swing low of 16824 & tumble towards 16600 in the short term. 

Rupak De, Senior Technical Analyst at LKP Securities  
Nifty started lower and fell below the 200-day moving average, which suggests a rise in bearish bet. The daily RSI is in bearish crossover. On the lower end, Nifty has support at 16800, a fall below 16800 may trigger a further fall in the market. On the higher end, resistance seen at 17200" 

Kunal Shah-Senior Technical & Derivative Analyst at LKP Securities 

The Bank Nifty index was the outperformer in yesterday's trading session. The index near-term support is placed at 35800 and a breach below this will lead to a fresh round of selling. The upside resistance is placed at the 36500-37000 zone and a close above this will resume the uptrend.

Ajit Mishra, VP - Research, Religare Broking Ltd.

Markets have been witnessing erratic swings within a broader range, largely in reaction to global cues. Besides, the lack of support from the domestic front is further adding to the participants’ worries. We thus reiterate our cautious stance and suggest limiting leveraged positions.

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