Closing Bell: Sensex, Nifty end flat amid volatility; mid, smallcaps underperform

Taking Stock | Sensex, Nifty end marginally lower amid volatility; power, oil and gas worst hit

The BSE midcap index declined 0.4 percent and the smallcap index fell 0.8 percent

Markets traded lackluster and ended marginally in the red, in absence of any major trigger. Initially, the Nifty index opened with an uptick but the gains fizzled out in no time and it remained range bound thereafter.

A mixed trend was witnessed on the sectoral front wherein realty, IT and auto continue to reel under pressure while resilience in select banking and financial majors capped the damage. Amid all, the broader indices remained under pressure and lost in the range of 0.4%-0.9%.

We expect volatility to remain high due to the scheduled expiry of March month derivatives contracts. On the index front, participants have been trying to defend 16,900 in Nifty for the last three sessions and its breakdown may trigger a sharp reaction on the downside. Needless to say, the recent sell-off in the broader indices may deteriorate further. We thus reiterate our view to limit trade and maintain positions on both sides.

Amid volatile moves in intra-day trades, key indices ended marginally lower and under-performed most of its Asian peers. Barring gains in select banking and metal stocks, other sectors witnessed profit-taking as caution prevailed ahead of the F&O expiry on Wednesday.

Technically, from the last three days the Nifty is taking support near 16,900 and resistance near the 17,100 level.

For the index, 16,900 would act as a key support level and on further uptick it could retest the level of 17,050-17,100. On the flip side, a fresh sell-off is possible only after the dismissal of 16,900 and below the same the index could slip till 16,820- 16,800.

Indian markets continued to stay in the grip of bears as investors remained cautious in expectation of further tightening from the RBI. While global market sentiment has been improving as the fears of broader contagion from the banking turmoil fade. Back home, Nifty small and midcap stocks continued to underperform due to fall in investors risk appetite and FY23 tax harvesting.

Nifty fell marginally on March 28 ahead of the fiscal year end. At close, Nifty was down 0.20% or 34 points at 16951.7. Broad market indices fell more than the Nifty as advance decline ratio remained negative at 0.38:1.

Global stocks mostly rose as concern over broader contagion from the banking turmoil eased.

Nifty closed at almost a five and half month low and in the process underperforming the other markets over the last few sessions. 16747-17045 could be the trading range for the Nifty in the near term. Tax loss related sales could have come to an end and we may soon see Indian markets performing in line with other markets.

Nifty witnessed yet another day of rangebound price action. It consolidated between 16,900 – 17,100 for the third consecutive day. On the hourly charts Nifty is trading in between 16,910 – 16,970 where the 61.82% and 78.6% Fibonacci retracement levels of the previous rise from 16,828 – 17,207 are placed.

We believe that it is a make or break zone and if at all the pullback rally has to resume it is likely to be from hereon. The daily and the hourly momentum indicators have a positive crossover which is a buy signal. Thus, both price and momentum indicator suggest positive price action over the next few trading sessions.

On the upside initial targets are placed at 17,200 and above that it can extend higher to 17,450 – 17,500. The crucial support zone is placed at 16,910 – 16,870.

Indian rupee closed 18 paise higher at 82.19 per dollar against previous close of 82.37.

: Benchmark indices ended lower in a volatile session on March 28.

At close, the Sensex was down 40.14 points or 0.07% at 57,613.72, and the Nifty was down 34 points or 0.20% at 16,951.70. About 1020 shares advanced, 2438 shares declined, and 97 shares unchanged.

Adani Enterprises, Adani Ports, Tech Mahindra, Tata Motors and Hero MotoCorp were among the top Nifty lower, while gainers included IndusInd Bank, UPL, Power Grid Corporation, Dr Reddy's Laboratories and HDFC Bank.

Except metal, all other sectoral indices ended in the red with IT, auto, power, realty and oil & gas down 0.8-1 percent.

The BSE midcap index declined 0.4 percent and the smallcap index fell 0.8 percent.

-Neutral call, target at Rs 1,120 per share
-Industry view is cautious in a tough macro
-Have room to improve margin in medium term, positioned better than peers
-Market will focus on pace of turnaround, which can potentially take time

Tech Mahindra was quoting at Rs 1,069.80, down Rs 32.40, or 2.94 percent.

The rising capital expenditure (capex) trend of Indian corporates is likely to continue and grow at 10%-12% a year during the next fiscal year to March 2024, Fitch Ratings said in a release on Tuesday.

Fitch said capex was flat over FY19 to FY21 and grew 16% in FY22. The forecasts are for the 8 state owned enterprises and 21 privately held Fitch-rated corporates in the country.

-Buy call, target at Rs 400 per share
-There might be some pent-up demand but no signs of momentum slowing down
-Pricing remained strong even in Q4 & visibility through mid-May is also quite good
-Management sees scope for 8-10% increase in India domestic ARR in H2FY24

Indian Hotels Company was quoting at Rs 312.10, up Rs 7.30, or 2.40 percent.

The new interoperability guidelines for prepaid payment instruments announced by the NPCI is a significant step towards building a more inclusive and seamless digital payments ecosystem in India. The interoperability of digital wallets and UPI can be a game-changer for the Indian fintech industry, as it opens up new opportunities for innovation, growth, and competition. With greater interoperability between payment systems, consumers will have more choice and flexibility in how they transact with merchants, leading to increased adoption of digital payments and ultimately driving financial inclusion and economic growth.

This move will also encourage innovation in the digital payments space, fostering competition and improving the quality of services offered to consumers. We believe this is a positive development for the Indian economy and the banking system as a whole, and we look forward to continuing to support the growth and development of digital payments in India.