Sensex and Nifty extended their losses on Monday as the benchmark indices tanked nearly 2.5% each. S&P BSE Sensex is now placed at 52,842, down nearly 10,000 points from its all-time high while the NSE Nifty 50 is placed at 15,863. Bank Nifty is currently at 32,871. Ahead of Tuesday’s trade, SGX Nifty was trading in the red, suggesting another gap-down opening for Dalal Street. Global cues were also weak as indices moved south owing to rising crude oil prices that fanned inflation concerns and raised questions about the economic expansion.
Global watch: On Wall Street, the rout continued on Monday as NASDAQ nose-dived 3.6%, followed by S&P 500 and the Dow Jones. Among Asian markets, Shanghai Composite, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all down with losses. Hang Seng was in the green.
Technical take: Nifty’s massive fall on Monday formed a small body candle at the lows on the daily chart with long lower shadow, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Normally, a formation of such doji patterns after a reasonable up moves or down moves could be considered as an impending reversal pattern post-confirmation. Hence, there is a possibility of an upside bounce in the short term,” he added. However, the short-term trend might still be weak.
Levels to watch out: Yesterday’s low of 15700 is now seen as important support, below which Nifty may tumble to 15300, said Ruchit Jain, Lead Research, 5paisa.com. “On the flip side, 16200 and 16400 will be seen as immediate resistance,” he added while suggesting caution. On the other hand, Nagaraj Shetti is expecting a bounce back from the current level or 15700-15500 lows.
FII and DII trades: Foreign investors continued their selling on Dalal Street, pulling out Rs 7,482 crore from domestic markets. Domestic investors were net buyers of stocks worth Rs 5,331 crore.
Call and Put OI: For the March F&O series, maximum Call Open Interest is placed at 17000 strike, followed by 16,500 strike. On the other hand, Put OI is the most at 16000 strike, followed by 16500.