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Russian military operations in two of Ukraine’s eastern regions resulted in a carnage on Dalal Street which dragged the Sensex by over 2,000 points. The domestic indices entered the correction territory. This came as an aftermath of shrugging of sanctions by Russian President Vladimir Putin, whose government recognised the independence of two eastern Ukrainain regions earlier this week, took note of ‘a plea to Moscow’ for help to stop alleged Ukrainian aggression. Further, the Russian President authorised a military operation, which some agencies suggested could be the start of war in Europe over Russia’s demands for an end to NATO’s eastward expansion. Putin, however, insisted Russia does not plan to occupy Ukraine.
BSE Sensex crashed over 2,000 points and NSE Nifty also tumbled over 500 points. Investors lost over Rs 7.5 lakh crore within minutes of market opening. The market cap of BSE-listed firms fell by Rs 7.59 lakh crore after investor wealth declined to Rs 248.09 lakh crore against Rs 255.68 lakh crore in the previous session.
“We are seeing the first meaningful correction in the market after a strong performance in 2021. A correction was due where geopolitical tension has become an excuse for this correction. Inflation and rising interest rates are the major concerns for equity markets and geopolitical tension is increasing the risk of inflation as energy prices are rising,” said Parth Nyati, founder, Tradingo.
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Vikas Jain, senior research analyst at Reliance Securities, said that time and price correction of more than 5 months since the highs of 18,600 levels in October 2021 would get subsidized by the end of March 22 and we expect markets to resume their upward trend as markets would start focussing on full-year earnings and valuations roll over to next year earnings offer better risk-reward after the sharp correction in individual sector and stocks. “Among sectors, we believe Private banks, IT, and Pharma are the sectors where investors should gradually build positions over the next few weeks,” Jain stated.
Nifty Technical Outlook
The Indian market crashed more than 2.5 per cent after Russia announced military action against Ukraine. All the global indices plunged sharply as investors turned cautious after the Russian president action and shifting the money flow from risker assets to safe heaven like Gold, Silver & Crude oil.
Commenting on if Nifty could correct further, Sachin Gupta, assistant vice president, research, Choice Broking, stated that “Technically, the nifty has beached the prior support of 16800 and moved below the lower Bollinger band & 200-days SMA, which indicates bearish sentiments for the near term. A momentum indicator RSI & MACD suggested negative crossover on the daily chart, which point-out further bearishness in the index. At present, Nifty has crucial support around 16,400 levels, if market breaks the same so the correction can extend till 16,000/15,800 levels while on upside the resistance at around 16,800/17,000 levels.”
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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