THE NIFTY HAS SEEN A SHARP DECLINE, NIFTY BANK ALSO MOVED DOWN AND CLOSED LOWER FOR THE FOURTH CONSECUTIVE TRADING DAY; THE SHORT- TERM TREND IS SIDEWAYS NOW

NIFTY:

The NIFTY opened at 22432.20 with a gap up of 97 points. The index could not sustain at the higher levels and started drifting downwards sharply after recording its intraday high at 22446.75. A sharp decline took place. The bears were in complete control as prices did not see much of a rally during the day. The down move brought prices below 22000 levels. Index heavyweight RELIANCE led the bears as the stock ended with a loss of over 2.50% while ITC, HDFC BANK, and ICICI BANK gave some strength and tried to cap the losses. The intraday range was very wide as prices have traveled within a range of 541 points. The long-term trend is up while the long-term momentum has moved down from the strength zone. The Intermediate trend is up while the intermediate momentum has reached the weak zone. Both the momentum have aligned on the downside suggesting lower levels may be ahead.

BANK NIFTY:

The BANK NIFTY opened at 47341.15 with a gap up of 64 points. The index initially moved sideways but eventually broke on the downside after recording its intraday high at 47468.70. Prices have seen a sharp intraday decline and went below 47000. Prices recorded its intraday low at 46842.15, saw a minor recovery towards the end, and finally closed at 46887.25 with a loss of 390 points. PSU BANKS have again significantly underperformed, saw a sharp downside move, and ended with a loss of 4.37%. PVT BANKs have also moved down, saw a mild decline, and finally closed with a loss of 0.97%. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while SBIN contributed the lowest. The trend is sideways now. We should wait for a close below 47000 support levels. As of now, we should step aside and avoid trading the index.

DERIVATIVE PICKS

TOP  DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• The Indian market closed deep in the red on March 17 as broad-based selling and the mid and smallcap meltdown continued for another day, spooking investors. At close, the 30-pack Sensex was down 906.07 points, or 1.23%, at 72,761.89, while the broad-based Nifty ended 338.00 points, or 1.51%, lower at 21,997.70.

• Investment has become a major driver of India’s booming economy, according to economists at Morgan Stanley, adding that the country’s current expansion resembles that of the mid-2000s when growth averaged more than 8%. The economists also said the economy appears to have room for even further expansion, given the path for additional capital expenditure — especially from private businesses — rising exports and a more stable economy.

• IIFL Finance Ltd. is planning to raise Rs 2,000 crore through a mix of equity and debt. The board has approved plans to raise up to Rs 1,500 crore through a rights issue and Rs 500 through the issue of non-convertible debentures on a private placement basis, according to an exchange filing on Wednesday.

• The finance ministry has directed all state-owned banks to review their gold loan portfolio as instances of non-compliance with regulatory norms have been noticed by the government.

Source: Economic Times, Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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