Dalal Street Corner: Market snaps 3-day winning streak, ends in red on FY22's culmination; what should investors do on Friday?

Putting a halt to three consecutive winning streaks, benchmarks failed to take advantage of positive opening as the Indian markets ended negative on the last monthly F&O expiry of FY 2021-22.  

The year saw barometer indices putting up a good show despite a slew of headwinds as Nifty50 and S&P BSE Sensex ended FY 201-22 with over 18% gains each.  

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Even Nifty midcap and small cap ended with over 25% and more than 28% gains at the end of FY 22.  The 12-share Nifty Bank comparatively ended the year with marginal gains over 9% for the year ended March 31,2022.  

Meanwhile, on Thursday, the broader Nifty50 slipped below 17,500 as the index ended with 0.19% loss to 17464.75 and the Sensex settled with more than 100 points loss or 0.20% lower to 58,568.51. 

Sectorally, Pharma, healthcare and PSU Bank were top laggards, while FMCG and Private Bank attracted buying interest in a weak market.  

"We witnessed some lackluster movement in the market and an attempt to hold above the levels of 17400. Our research suggests that sustaining above 17400 will be an important level for the market to stay positive in the short term. If the market sustains above the support levels, we expect the market to stay positive till the level of 17600," said Vijay Dhanotiya, Lead of Technical Research at CapitalVia Global Research Limited. 

We have observed momentum indicators like RSI and MACD indicating positive side momentum in the market, he added. 

As March 31 also brings down the curtain on FY2022, here is what market experts say about the performance on Thursday and year gone by:  

S Ranganathan, Head of Research at LKP securities  

Even as markets ended the last day of the financial year in a rather quiet mood, it has delivered a 19% return this year on the Nifty with two sectoral indices - Metals & Media returning over 50% this year. On the broader market as well, both the Midcap-100 & the Smallcap-100 delivered over 25% return this year. Such returns in a year when FPI's have pulled out big money highlights the confidence of the Indian Investor amidst a slew of headwinds. 

Palak Kothari, Research Associate, Choice Broking 

Technically, the index showed profit booking from higher level, but managed to close above the horizontal level i.e 17400 sustained above the same suggested upside movement. Moreover, Index has tested the 61.8% 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 and sustaining above the same can show northward direction. The Nifty may find support around 17400 levels, while on the upside, 17600 may act as an immediate hurdle for the index. On the other hand, Bank Nifty has support at 35800 levels, while resistance is seen at 36800 levels. 

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

The Nifty opened on a positive note on March 31, however, couldn’t continue with its winning streak. For the last couple of sessions, the index has been hovering near the crucial barrier of 17500. Failure to sustain above this crucial hurdle suggests that the index can consolidate further in the range of 17000-17500 in the short term. The hourly chart shows that the Nifty has broken down from a rising channel & the breakdown is being accompanied by a bearish hourly momentum indicator.  

Going ahead, the index is expected to fill up a gap area of 17387-17343 on the daily chart. Short-term traders can consider booking profit at this level & wait for a minor degree dip to initiate a fresh long position. 

(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.)