During midday trading on March 5, both the Sensex and the Nifty registered losses, breaking a streak of four consecutive days of gains. This downturn was attributed to subdued global cues influencing market sentiment.
During midday trading, the Sensex declined by 365.97 points or 0.50 percent to 73,506.32, while the Nifty dropped 102.90 points or 0.46 percent to 22,302.70. Market sentiment was reflected in the performance of individual stocks, with 1,107 shares advancing, 2,089 declining, and 73 trading unchanged.
In the US markets, stocks closed lower on March 4, retreating from record highs as treasury yields inched higher. Investors are now awaiting key job data and the Federal Reserve chair’s testimony before lawmakers scheduled for March 6-7, which will provide insights into the US central bank’s interest rate plans for the year.
Meanwhile, Tata Motors saw its stock surge by 4 percent to reach a 52-week high of Rs 1,027 on the back of bullish brokerage commentary following the announcement of the company’s decision to spin off its passenger vehicle (PV) and commercial vehicle (CV) businesses into two separate entities.
The broader market indices also faced downward pressure, with the BSE Midcap index declining by 0.1% and the BSE Smallcap index falling by 0.5%.
Sectoral Trends:
The Nifty IT index faced significant downward pressure, with CLSA downgrading TCS and HCL and reiterating its “sell” call on Wipro and LTIMindtree. Despite a weak growth outlook for the sector in 2024, valuations of these stocks do not reflect this sentiment, according to CLSA analysts.
In contrast, Nifty PSU Bank and Nifty Auto emerged as the top sectoral gainers during the period.
Fundamental View:
Prashanth Tapse, Senior Vice President of Research at Mehta Equities, noted that the Nifty is bolstered by strong technical support at 22050, amidst bullish sentiments in the market. However, upcoming events such as Fed Chairman Jerome Powell’s testimony and US Nonfarm payrolls data could sway market directions. Tapse recommended trading strategies that advocate buying positions in Nifty, Bank Nifty, and selected stocks like NTPC, Coal India, NMDC, and Adani Enterprises, blending value and momentum plays for investors amid a cautiously optimistic outlook.
Technical View:
According to Sameet Chavan, Head of Technical and Derivative Research at Angel One, support levels are anticipated around 22300-22250 against market downturns, with additional support from the ‘ascending triangle’ formation breakout around 22150. Chavan highlighted the challenge of identifying key resistance levels but suggested that levels around 22500 and 22630 could serve as immediate resistance based on reciprocal retracements.
Key Nifty Gainers:
- Tata Motors
- UPL
- Mahindra & Mahindra
- SBI
- Bajaj Auto
Key Nifty Losers:
- TCS
- Infosys
- LTIMindtree
- JSW Steel
- SBI Life Insurance
Key Sensex Gainers:
- Tata Motors
- Mahindra & Mahindra
- SBI
- Bharti Airtel
- NTPC
Key Sensex Losers:
- TCS
- Infosys
- JSW Steel
- Nestle India
- HCL Tech
Stock Moves:
- Infibeam Avenues: Shares surged over 8 percent on March 5, following the Reserve Bank of India’s (RBI) final authorization for the company to operate as a payment aggregator under the Payment Settlements Act, 2007 for CCAvenue.
- NBCC: Shares rose 2 percent in early trading after the company’s subsidiary secured a Rs 92-crore order.
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