In a day marked by considerable volatility on March 12, India’s key stock market indices closed with a mixed performance. The BSE Sensex saw a modest rise of 165.32 points, or 0.22 percent, closing at 73,667.96, while the Nifty edged up by three points, or 0.01 percent, settling at 22,335.70.
Investors remained vigilant ahead of the release of US inflation data later in the day, seeking insights into the potential timing of the Federal Reserve’s interest rate adjustments.
Although the market initially showed signs of positivity, gains were tempered by profit booking activities across various sectors, excluding Information Technology.
Among the top performers on the Nifty were HDFC Bank, TCS, LTIMindtree, Maruti Suzuki, and Infosys. Meanwhile, notable decliners included Adani Enterprises, Cipla, Grasim Industries, Adani Ports, and SBI.
Sector-wise, barring IT, all other indices concluded in negative territory. The realty index took the most substantial hit, declining nearly 3.5 percent, followed by PSU Bank and Media indices, each falling by two percent. Additionally, capital goods, FMCG, healthcare, metal, and power indices recorded one percent declines.
The BSE Midcap index experienced a decline of 1.3 percent, while the Smallcap index witnessed a more substantial drop of two percent.
Several individual stocks saw significant increases in trading volume, with spikes exceeding 200 percent observed in Aditya Birla Capital, Indiamart Intermesh, and Oracle Financial Services Software.
Notable long build-up positions were noted in Balkrishna Industries, Aditya Birla Capital, and Indiamart Intermesh, indicating increasing bullish sentiment towards these stocks. Conversely, short build-up positions were observed in DLF, NALCO, and Bharat Electronics, suggesting a growing bearish outlook for these stocks.
Here’s a summary of the index prices and notable movements for March 12, 2024:
- Sensex closed at 73,667.96, up by 165.32 points (+0.22%).
- Nifty 50 ended at 22,335.70, with a marginal increase of 3.05 points (+0.01%).
- Nifty Bank closed at 47,282.40, down by 45.45 points (-0.10%).
Among individual stocks:
- HDFC Bank was the biggest gainer, closing at 1,459.55 with an increase of 31.75 points (+2.22%).
- Adani Enterprises witnessed the most significant decline, closing at 3,122.50 with a decrease of 84.85 points (-2.65%).
In terms of sectors:
- Nifty IT emerged as the best-performing sector, closing at 37,224.30 with a gain of 236.00 points (+0.64%).
Several stocks reached their 52-week high on the BSE, including:
- TCS (Tata Consultancy Services)
- Oracle Financial Services Software
- Interglobe Aviation
- Quick Heal Technologies
- eMudhra
- Hercules Hoists
- Cigniti Technologies
- Gujarat Themis Biosyn
- Waaree Renewable Technologies
This indicates strong performance and investor confidence in these companies, as they achieved their highest price levels in the past year.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
The Nifty experienced significant volatility during today’s trading session, with an intraday swing of approximately 200 points. Despite this, it managed to close marginally higher by about 3 points. Looking at the daily charts, the Nifty has been trading within a range of 22,200 to 22,600 for the past seven trading sessions. On the downside, key support levels such as the 20-day moving average (22,199) and the previous swing low (22,224) are expected to absorb selling pressure and provide a cushion in case of a decline. On the upside, immediate resistance is seen in the range of 22,500 to 22,550.
The Bank Nifty tested its 20-day moving average (46,900) and saw a decent pullback to close off the intraday lows, albeit with a negative bias down by about 45 points. Crucial support for the Bank Nifty is situated at 47,000 to 46,900, while resistance is seen in the zone of 47,820 to 48,000.
The broader market saw significant declines today, with the Midcap Index closing in the red down by approximately 1.4%, and the Small Cap Index closing down by about 1.98%. The small cap index has reached its 20-week moving average at 15,075, suggesting that the intensity of the fall in small cap stocks may diminish from this point onward.
Prashanth Tapse, Senior VP (Research), Mehta Equities
Despite broad-based selling, particularly in realty, power, and capital goods stocks, select buying in frontline stocks helped key benchmarks to end in positive territory in today’s volatile trading session. Market focus remains on the upcoming inflation readings to be released in both the US and India. Any further moderation in inflation could improve the prospects of a rate cut by the Federal Reserve, thus impacting market sentiment.
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