Nifty, Sensex witness sharp fall; Analysts decode reasons, give crucial support & resistance levels as indices trade lower

The Indian markets opened nearly 2 per cent lower in the opening trade as the benchmarks slipped further minutes into trading amid geopolitical tension between Russia and Ukraine and weaker global cues. The Nifty50 touched day's low of 16,916.55, declining by more than 400 points, while the Sensex dipped nearly 1500 points to trade at 56,612.07 amid volatility.  

TCS, ONGC were the only gainers on the two indices as all broader markets turned negative, while banking & financial services, metal and auto stocks were impacted negatively the most on Maniac Monday.  

JSW Steel, HDFC Life, HDFC Ltd, Tata Steel, State Bank, ICICI Bank, Bharti Airtel, Kotak Bank and IndusInd Bank were top losers on Monday.    

SXG Nifty Futures was mirroring domestic market as the index corrected over 2% or shed 357.50 points to trade at 16,996.50 on the Singaporean Exchange around 10.50 am.  

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Analysts are of the view that 16800-16900 is ultimate support and resistance is placed around 17,400. As Stock markets continue to trade lower on Monday, stock market experts decode what's causing this fall and reveal crucial levels to watch out for going forward.  

Parth Nyati, Founder, Tradingo

Indian markets witnessed a sharp fall on the back of rising geopolitical tension between Russia and Ukraine. This geopolitical tension is leading to a sharp rise in crude oil prices, which is another headwind for Indian equity markets. World markets were trying to digest a record inflation in the US, but the surge in geopolitical tension spoiled the mood. There is some sentimental impact of the bank fraud issue of ABG group on banking stocks but it doesn't have a material impact as it is already part of NPA. 

Technically, Nifty is trading near-critical demand zone of 17000-16800, and the 'buy on dip' texture will be continued till Nifty trades above 16800 level its 200-DMA, however, there are multiple resistances on the upside till 17650 where 17300/17500 are immediate hurdles. There are no worries till Nifty trades above the 16800 level, but if Nifty slips below 16800 then things may become ugly.  

Also Read: Manic Monday! Sensex falls over 1000 points, Nifty below 17000: 5 factors weighing on D-Street

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments 

17000-17800 is the range for the index. While it is a wide range, traders should exercise extreme caution at the current juncture. Stop losses are large and whipsaws cannot be ruled out. Hence it is better to wait for a close below 17,000 to re-evaluate the trend. Closing below 17000 is imperative for a bearish view to get activated. On the upside 17400 is the current resistance level." 

Gaurav Garg, Head of Research at CapitalVia Global Research. 

Nifty is near the support levels of 16,900. If it sustains this level, we can expect a reversal from here with a volatile movement between 16900-17200. Bank Nifty and Sensex are also near to their support levels at 37,200-37,300 & 56400 respectively. The markets have reacted negatively after the escalation of tension between Russia and Ukraine as Russia increased its number of troops on the borders of Ukraine. 

Anand James - Chief Market Strategist at Geojit Financial Services.  

NIFTY outlook: Standard deviation studies suggest that a plunge towards 16200 and beyond, looms large. Oscillators, however, are yet to signal a directional downside, suggesting that a consolidation awaits us early in the week, most likely inside the 16960-17400 band. 

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services     

Sentiments have turned very negative for the short-term with the heightened tension over the Ukraine crisis. Weakness in global markets is the direct fallout of the Ukraine crisis. Crude at an eight-year high is another major macro concern for India. If crude remains at levels of $95 for an extended period of time, the RBI will be forced to revise upwards its 4.5% CPI inflation projection for FY23. Continuation of the accommodative monetary stance too will be difficult. While all these are negatives, diffusion of the Ukraine crisis can trigger a sharp rebound in markets led by large-cap bluechips. 

Mohit Nigam, Head - PMS, Hem Securities

There is a short term negative sentiments in the markets due to Ukraine-Russia crisis tensions, rising crude oil prices and US FED’s aggressive rate hike expectations due to decade high inflation. But we believe the current fall in the market is due to Ukraine crisis and we may witness strong rebound in markets after easing of Ukraine Crisis. Market volatility is expected to stay on higher end, so investors should not jump in to markets for short term gains rather they should have a long term horizon and add quality stocks in such significant dips.