NIFTY REPORT & OUTLOOK FOR 20 MARCH 2024

Overview:

On March 19, 2024, Indian equity indices experienced a notable decline, with the Nifty closing at 21,817, marking a 1% drop amid widespread selling across various sectors. The Sensex also saw a significant decrease, down by 736 points, settling at 72012. The market sentiment remained bearish throughout the day, with concerns over global economic factors and sector-specific issues contributing to the decline.

Key Highlights:

Market Performance:

1. • The Nifty closed at 21,817, down by 238 points.
   • The Sensex closed at 72012, marking a decline of 736 points.
   • Market breadth remained negative, with 1202 shares advancing, 2458 shares declining, and 112 shares remaining unchanged.

2. Sectoral Performance:

   • All sectoral indices ended the day in the red:
     • Healthcare, IT, FMCG, Capital Goods, oil & gas, power sectors saw declines ranging from 1-2%.
     • BSE Midcap and Smallcap indices shed 1 percent each, moving in tandem with the frontline indices.

3. Top Gainers and Losers:

   • Notable losers on the Nifty included TCS, BPCL, Tata Consumer Products, Tata Consumer, and Nestle India.
   • On the other hand, gainers included Bajaj Finance, Bajaj Auto, Kotak Mahindra Bank, Hindalco Industries, and Bharti Airtel.

4. Market Analysis:

   • The decline in the market was attributed to several factors, including concerns over premium valuations, delays in US Fed rate cuts, and rising crude oil prices.
   • The correction was also influenced by global factors, such as the Bank of Japan's decision to hike interest rates for the first time in 17 years, impacting Asian market sentiment negatively.

5. Technical Analysis:

   • The Nifty breached its daily trendline and closed below the critical support level of 21,850, signaling sustained bearish pressure.
   • Analysis of Open Interest (OI) data indicated the highest OI on the call side at the 22,000 strike price, while on the put side, it was observed at the 21,500 strike price.
   • The BankNifty experienced sideways trading, marked by indecision between bulls and bears, with key support at 46000 and resistance at 47000.

6. Market Outlook:

   • Investors are cautious ahead of the upcoming US Fed meeting, seeking indications on the potential timing of a reversal in the rate cycle.
   • The market is closely watching for a breakout beyond key resistance levels, while maintaining focus on crucial support levels for potential corrections.

Conclusion: The Indian equity market witnessed a significant decline on March 19, 2024, with broad-based selling across sectors. Concerns over global economic factors, coupled with sector-specific issues, contributed to the bearish sentiment. Investors remain cautious amidst uncertainties, awaiting key developments both domestically and internationally for further market direction.