Monday massacre on D-Street: Sensex, Nifty nosedive over 2% each, Rs 3.78 cr investor wealth erased

S&P BSE Sensex dived 1,145 points to end at 49,744. 50-stock NSE Nifty ended at 14,676, giving up the crucial support levels.

Stock market today, Sensex today, Nifty today
India VIX or the fear gauge of domestic markets zoomed 15% to close above 25 levels. (image: REUTERS)

Sensex and Nifty have now erased all gains made since February 3 as bears continued to wreak havoc on Dalal Street for the fifth consecutive session. S&P BSE Sensex dived 1,145 points to end at 49,744. 50-stock NSE Nifty ended at 14,676, giving up 15,000 mark initially in the day and then falling below 14,700 which again as a support level. Amid this, India VIX or the fear gauge of domestic markets zoomed 15% to close above 25 levels. Monday’s trading session left investors poorer by Rs 3.78 lakh crore.

Deepak Jasani, Head of Retail Research, HDFC Securities

“Indian benchmark equity indices fell the most in two months on Feb 22, ending lower for the fifth consecutive session. Nifty has fallen 5% from its all-time high in about 5 sessions. Indian equities came under selling pressure due to Cautious trade in markets abroad, Slowing FPI inflows, profit-taking and breach of key technical levels. Rising crude oil prices that could impact the macros and inflation and rising 10-year Gsec yields were the key local factors that shook the equity markets. Also, markets have run up quite sharply since the end of January 2021.”

Ajit Mishra, VP – Research, Religare Broking

“Markets started the week on a feeble note and lost over 2%, tracking subdued global cues. Among the benchmark indices, the Nifty index slipped below the crucial support zone of 14,800 and finally closed at 14,676 levels. The recent spike in the COVID cases combined with subdued global cues is weighing on the sentiment. After this slide, Nifty has lost momentum and the next major support exists at 14,300. Going ahead, macroeconomic data i.e. GDP data and core sector data and updates on COVID-19 cases would be actively tracked.”

Vinod Nair, Head of Research at Geojit Financial Services

“Rising economic restrictions from a spike in virus cases and weak global cues hit the domestic market sentiment. The rate of market fall was aggravated by a sharp rise in volatility, being a monthly F&O expiry week. FPI inflows which was leading the rally slowed down due to global vulnerabilities from rising bond yield & inflation. However, this is a buy on dips market, a short-term correction will trigger new buying, as economic fundamentals have improved, with more focus on industrial & cyclicals.”

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

“The markets have cracked the support of 14800 with utmost ease and on the back of good volumes. We should slide to 14500 which should be the next level of support failing which 14300 would be the next target for the Nifty. The resistance on the upside now stands at 15100 and until we do not cross that, a rally up can be utilized to short the Nifty for lower targets.”

Manish Shah, Founder, Niftytriggers

“Nifty saw a fast decline as it lost 300 points over the close of the previous day. The price action showed a long red candle that has closed that the lows of the day and the range of the candle highest in the last 8-10 days. Nifty is in oversold territory as short-term oscillators show oversold reading. After a fall of such magnitude, there is a relief rally. As we go into the last few days of February expiry expect the volatility to be high.”

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First published on: 22-02-2021 at 16:25 IST