The Indian market was trading down about one percent on March 21. Experts said this was largely expected after a rally of 4 per cent in the previous week. The Sensex was trading at 57,292, down by about 571 points or 0.99 per cent at the time of market closing, while the Nifty fell 169 or 0.98 per cent to close at 17,118.
These 4 factors are pulling the market down
1 Russia-Ukraine War
Russian forces continue to advance on Kyiv, the capital of Ukraine. In the face of strong resistance from Ukrainians and their military forces, Russian forces are aggressively shelling cities in Ukraine. This circumstance shows that the war is unlikely to end any time soon. No significant progress has been made in the peace talks between the two sides.
Meanwhile, many countries of the world have continued to announce sanctions against Russia, according to a CNBC report. On 20 March the Australian government decided to ban the export of alumina and aluminum ores to Moscow.
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2 Global cues
There was mixed trade in Asian markets. Here the businessmen closely monitored the Ukraine-Russia war. Hong Kong’s Hang Seng and South Korea’s Kospi were down 0.89 per cent and 0.77 per cent, respectively, while Japan’s Nikkei rose 0.65 per cent.
In the European markets too, the CAC of France and the FTSE of the UK traded mixed. Germany’s DAX remained marginally weaker.
3 Oil prices
After talks between Ukrainian and Russian officials did not yield positive results, crude oil prices rose again on fears of tight supplies.
International benchmark Brent crude futures remain volatile after falling nearly 20 per cent from March highs. Brent was trading at $112.3 a barrel, up 4% from its March 19 closing price.
Diesel price for bulk-users in India has been hiked by about Rs 25 per liter, while international oil prices have gone up by about 40 per cent. At the same time, there has been no change in the retail rates at petrol pumps.
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Trading of 4 Sectoral Indices (Sectoral play)
Selling pressure was witnessed in Banking & Financials, FMCG and IT stocks. These stocks have gained in the past weeks and saw profit-booking today.
Nifty Bank, Financial Services and FMCG indices fell one per cent each, while IT indices declined marginally. However, the metal index rose 1.5 per cent on the contrary.
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Technical Advice
Angel One’s Sameet Chavan said last Thursday the bulls showed a great move and crossed the strong barrier of 16,800-17,000. This level will now act as immediate support for Nifty.
On the other hand, if it continues to rise, then the level of 17500 and after that 17650 can also be seen on Nifty.
Sameet further added that even then the index may not move as fast as it did in the last five-six sessions. He said there could be profit-booking this week due to which there could be some consolidation or light tug of war.
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