Sensex
After four weeks of increases, Sensex and Nifty fell 2% for the first time. Regulatory warnings and broad-based selling and a mid- and small-cap market crash alarmed investors.
One week after four weeks of advances, India’s benchmark Sensex and Nifty fell 2%, the worst weekly decrease in 20 weeks. Despite regulatory warnings, mid and smallcap stocks continued to tumble, frightening investors.
The week saw the Sensex fall 2.2 percent and Nifty fall 2.1 percent. It was the steepest weekly drop since October 2023. BSE MidCap and SmallCap fell 4% and 6%.
Sectors and stocks
Global shares fell due to disappointing US data, lowering prospects of a Federal Reserve interest rate drop and depressing moods. Thursday figures showed that US producer prices outperformed expectations in February and fewer people registered for and got unemployment benefits than expected, undermining the Fed’s case for a rate decrease.
SEBI’s direction to mutual funds to protect investors from overheating has caused massive selling of BSE MidCap and SmallCap stocks since mid-February. Experts warned of inflated values post-2023 bull run, with BSE SmallCap up 74% and MidCap index over 60% in the last year. Analysts say the market pullback is beneficial because it balances overbought zones.
The SEBI Chair mandated stress-testing mutual fund disclosure by March 15. This measures how rapidly funds leave stressed portfolios. It handles illiquid market redemption issues. The disclosure informs investors on small-cap and mid-cap fund stress outcomes.
Small-cap and midcap stress test guidelines from AMFI require fund houses to submit results every 15 days, with the first report due by March 15. These tests show portfolio liquidity, essential for quick investor withdrawals and redemptions during market crashes.
March 18 forecast
Domestic equities experienced profit-taking due to weak US and Asian markets, with investors selling auto, oil & gas, banking, and power stocks. Economic readings, including inflation and IIP numbers, exacerbated the bearish mood. Local investors will closely monitor global markets to decide on their equities exposure amid uncertainty.
Markets experienced a loss of over 5% due to mixed cues. The Nifty gradually fell and nearly reached Thursday’s low. Despite attempting to recover, pressure on select heavyweights halted its recovery. The Nifty settled at 22,024, down by 0.53 percent. Auto, energy, and pharma sectors were among the top losers. The broader indices traded mixed, resulting in neutral market breadth. The Nifty is expected to consolidate with a negative bias until it reclaims 22,250 levels. The pace of decline will be gradual due to select heavyweights’ resilience.
The Nifty and Sensex experienced a sharp decline last week, with the Sensex dropping over 1600 points. Sectoral indices, particularly the Reality and Media indices, saw the most significant losses, with the Nifty losing 2.20 percent and the Sensex losing over 1600 points. The index has formed a bearish candle and is trading below the 20-day Simple Moving Average (SMA), which is largely negative. A weak formation is likely to continue, with the market potentially slipping below the SMA. Bulls should focus on 22150/73000 and 22200/73200 as key resistance areas. A fresh uptrend rally is possible after dismissing the 20-day SMA or 73200, and the Bank Nifty could move up to 47200-47500 above the SMA.
The Nifty has once again closed below the rising trendline, bringing market sentiment back into a state of weakness. The momentum indicator suggests bearish momentum in the near term. Immediate support is situated at the 50DMA, currently at 21,900, which is expected to provide support for the Nifty. A decisive drop below 21,900 could lead to a sharp decline in the index. On the upside, resistance is observed in the range of 22,200-22,250.
| FII Sold | 848.56Â Cr |
| DII Sold | 682.26Â Cr |
Indian Market Stocks
| Sensex | -453.85 | -0.62% | 72,643.43 |
| Nifty 50 | -123.30 | -0.56% | 22,023.35 |
| Bank Nifty | -195.85 | -0.42% | 46,594.10 |
Market Movers
| Bharti Airtel | 181.25 6.24% | M&M | -91.05 -4.82% |
| UPL | 9.05 1.96% | BPCL | -22.30 -3.66% |
| HDFC Life | 11.05 1.78% | Coal India | -12.45 -2.91% |
| Bajaj Finance | 112.45 1.76% | Tata Motors | -21.90 -2.26% |
| Adani Enterpris | 52.90 1.71% | Larsen | -71.05 -1.97% |
Must read book about investing – check hereAfter four weeks of increases, Sensex and Nifty fell 2% for the first time After four weeks of increases, Sensex and Nifty fell 2% for the first time
The Nifty has experienced a decline, closing the day around 160 points lower. The daily charts show no follow-through buying interest after a breakout, and selling pressure at higher levels could lead to a slipping back into the consolidation zone. The Bollinger bands are contracting, indicating a range contraction. The Bank Nifty has not maintained positive momentum, and it could slip towards the 46900-46800 range. The overall trend is bullish, with an intermediate corrective phase in progress. Short-term weakness could lead to a decline towards the 22200-22250 range.
The Nifty has experienced a decline, closing the day around 160 points lower. The daily charts show no follow-through buying interest after a breakout, and selling pressure at higher levels could lead to a slipping back into the consolidation zone. The Bollinger bands are contracting, indicating a range contraction. The Bank Nifty has not maintained positive momentum, and it could slip towards the 46900-46800 range. The overall trend is bullish, with an intermediate corrective phase in progress. Short-term weakness could lead to a decline towards the 22200-22250 range.
Red Alert Red Alert Red Alert Red Alert Red Alert Red Alert Red Alert Red Alert
Record High Record High Record High Record High Record High Record HighrRRecord HighRecord Highecord Highockets
Market Rally Halts Market Rally Halts Market Rally Halts Market Rally Halts
stor Alarm