Indian benchmark equity indices NSE Nifty and BSE Sensex closed in the red after a choppy session. Sensex lost 0.5% or 334 to settle at 60,506.9 while Nifty dropped 89.45 points, closing at 17,764.6. However, Nifty Next 50 fared better, closing 0.55% in the green on Monday. Sectorally, Nifty Media and Nifty FMCG outperformed while Nifty Metal dragged.
Markets Decoded: Strong US jobs data, caution ahead of RBI meet drag markets
Investors cautious ahead of RBI policy: Shrikant Chouhan, Kotak Securities
“While the sentiment has been sluggish over the past week or so, today’s fall can be attributed to weak Asian cues and cautious approach from the investors ahead of the RBI’s credit policy. Selling seemed to have been triggered by further strengthening of dollar against the rupee, leading to weakness in metal, power & select banking stocks. Moreover, markets may continue to witness bouts of intra-day volatility due to lack of any fresh positive triggers in the global arena.
Strong US job market pushed global market lower: Vinod Nair, Geojit Financial Services
A strong job market in the United States pushed the global market lower on rate hike fears, as it offers the Fed more leeway in enacting stricter policy measures. This was in contrast to the recent rally in the global indices on the expectation that the economy is in its last phase of policy tightening. RBI’s policy announcement on Wednesday will provide more colour on its future rate actions, which is expected to hike rate by 25bps.
Nifty could be less volatile going ahead: Deepak Jasani, HDFC Securities
Volumes on the NSE fell after seeing large volumes on the previous 3-4 sessions. Broad market indices ended higher even as the advance decline ratio was up at 1.11:1. Global stocks were largely down after last week’s stronger than expected US jobs report raised the likelihood of further interest rate increases and geopolitical concerns increased after the United States shot down a suspected Chinese spy balloon that had floated across the country for days. Nifty witnessed the smallest high-low range in 4 sessions suggesting lower volatility going ahead.
Nifty Technical View: Non-directional activity to continue
17,700 key support level: Shrikant Chouhan, Kotak Securities
“Technically, the Nifty hovered between 17,700 to 17,800 price range. On daily charts the index has formed a small inside body bearish candle which is indicating the continuation of a non-directional activity in the near future. For Nifty, 17,700 would be the key support level and below the same the index could slip till 17,600-17,520. On the flip side, a fresh rally is possible only after the dismissal of 17,825 and above the same, the index could rally till 17,900-17,925.”