Dalal Street Corner: Investors lose Rs 7.2 lakh crore in 3 sessions; what should they do on Wednesday?

Extending losses for the third session, the Indian market closed in the red amid volatility across global markets in view of the FOMC meeting outcome on June 15. Though it was third straight negative closing, the benchmark indices on Tuesday ended with a marginal loss of less than 0.3% as CPI data moderated on a month-on-month (MoM) basis.  

The broader Nifty50 ended near 15,700, while the Sensex shed around 150 points to settle near 52,700. Likewise, Nifty midcap and smallcap closed with 0.23% and 09% cuts as smallcap and midcap stocks remained under pressure 

Sectorally, Metal, Healthcare, Pharma, Realty and IT saw some buying interest, while all other Nifty sectoral indices ended in the red. Nifty oil & gas declined the most with 1.2% cuts on Tuesday.  

Meanwhile, the investors lost over Rs 7lakh crore as indices closed the red in the past three sessions, including around Rs 6 lakh crore in a single day in Monday's crash. Against Rs 2,51,84,358.86 crore on Friday, June 10, the market capitalisation of the BSE-listed companies came down to Rs 2,44,60,959.63 crore as on Tuesday, June 14, a decline of 7.24 lakh crore.  

As the market fell for the third session, here is what experts make of Tuesday's session.  

Vinod Nair, Head of Research at Geojit Financial Services. 

The domestic market restrained from heavy sell-off as CPI data moderated on a MoM basis and this had a calming effect amidst global volatility. However, elevated WPI data continued to dominate the broad market, which is cautious awaiting tomorrow’s outcome of Fed policy. Earlier the global market was anticipating a 50bps hike but now is worried about a higher rate hike due to persistent US inflation. 

Rupak De, Senior Technical Analyst at LKP Securities 

The Nifty started the day on a negative note on Tuesday and remained mostly sideward during the day. On the lower end, it found support at the historical swing low and before closing a bit higher. The daily RSI is in the bearish crossover. The trend is likely to remain sideward in the short term. On the lower end, support is visible at 15650. On the higher end, resistance is placed at 15900/16000. 

 
Ajit Mishra, VP - Research, Religare Broking Ltd 

Markets are witnessing pressure ahead of the crucial US Fed meet outcome scheduled for Wednesday. Given the inflation data at a 40-year high in the US, expectations of 75 bps hike have increased. We thus reiterate our cautious view on markets and suggest limiting leveraged position ahead of the event. 

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities. 

The Bank Nifty index, ahead of the FOMC meeting, is trading near a major make-or-break zone. The index is still trading in a downtrend and if fails to sustain the level of 33,000 on a closing basis will lead to further selling pressure. The upside momentum to resume the index has to close above the level of 34,000 where the height of open interest is built up on the call side. 

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

The Nifty continued to hover around the swing lows seen in March & May this year. The bulls managed to defend the March low of 15671 on a closing basis for the second consecutive session. As long as the index stays above this low on a daily closing basis, there is a scope for a bounce back. The index attempted a bounce on June 14, however, couldn’t take out the previous session’s high. On the higher side, 15880-15900 is the near-term resistance zone. If the index surpasses this barrier, then it will be set for a short-term recovery. On the flip side, failure to hold the March low on a closing basis would mean further downside to 15400 & subsequently to 15100 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.)