Trade Nivesh 4 Factors weighing on Market
The Nifty50 fell sharply and formed large bearish candle which resembles a Bearish Engulfing pattern on daily charts.
After opening in the green benchmark indices turned negative and further extended the losses in the afternoon session. Nifty came close to 11,000 levels but bounced back sharply in the last hour of trading.
At day's low, BSE Sensex breached 38,000 levels, falling 777.6 points or 2.01 percent to 37,846.10, while the Nifty50 corrected 221.15 points or 1.95 percent to 11,082.15.
Benchmark indices have now fallen in eight out of the last nine trading sessions.
The carnage was worse in the broader markets. Nifty Midcap and Smallcap indices plunged 3 percent each amid weak breadth.
About four shares declined for every share rising on the NSE.
Here are four factors that weighed on the markets:
Rising coronavirus cases in India
A surge in coronavirus cases has further put Indian markets in bear territory. At the time of publishing this copy, 28 cases were reported, however, no deaths have been confirmed yet.
"We were the most expensive market globally, which has been correcting due to coronavirus fears. ETF selling and deleveraging has been happening now. But it is not a big correction and we are not cheap yet," Ajay Srivastava of Dimensions Corporate Financial Services told CNBC-TV18. Trade Nivesh Investment Adviser
The novel coronavirus which was first identified in December last year in the Chinese city of Wuhan has now spread to 76 countries killing over 3,000 and leaving hundreds of thousands in quarantine.
Bank Nifty slumps as market await RBI action
Various central banks hinted policy initiatives to counter the economic slowdown in their respective countries.
Federal Reserve and the Reserve Bank of Australia cut interest rate by 50 basis points, each, while South Korea announced a $9.8 billion financial package to support the economy.
Participants now expect RBI to follow the suit. Get Live Intraday Level Trade Nivesh
However, the central bank's delay in providing stimulus has triggered sell-off in Bank Nifty as the index wiped out more than 1,000 points during the day.
"RBI should take this opportunity to cut both bands and cut repo rate in," Saurabh Mukherjea of Marcellus Investment Managers said in an interview to CNBC-TV18.
FIIs remain net sellers, rupee weakens
Foreign institutional investors (FIIs) continued their selling spree for the seventh consecutive session on March 3. Trade Nivesh Tradingview
They have now sold more than Rs 3,770 crore worth of shares in March so far. In February, there were net sellers to the tune of Rs 12,684 crore.
"We don't think the sell-off is India specific. We think outflows from India is on account on emerging markets basket sell-off," said Ayon Mukhopadhyay of IIFL.
The rupee has also shown weakness, hitting a 17-month low of 73.63 against the US dollar. It was down 12 paise to 73.41 a dollar at the time of publishing this copy.
Technical View
The Nifty50 fell sharply and formed large bearish candle which resembles a Bearish Engulfing pattern on daily charts.
A bearish candlestick pattern suggests that bears are back in control after the index ended in the positive on March 3.
A Bearish Engulfing Pattern consists of two candles. One candle is usually a small candle which is followed by a large black or red candlestick pattern that engulfs the short one or the previous candle.
"We expect that volatility will likely grip the markets as sentiments would be driven by updates on the spread of coronavirus. From the technical front, both the indices are still trading in a bearish territory as prices are holding below their 200-day exponential moving average. Therefore, we advise traders to remain cautious and keep a stock-specific view on the market," Shitij Gandhi, Senior Technical Analyst at SMC Global Securities told Moneycontrol.
The Nifty50 fell sharply and formed large bearish candle which resembles a Bearish Engulfing pattern on daily charts.
After opening in the green benchmark indices turned negative and further extended the losses in the afternoon session. Nifty came close to 11,000 levels but bounced back sharply in the last hour of trading.
At day's low, BSE Sensex breached 38,000 levels, falling 777.6 points or 2.01 percent to 37,846.10, while the Nifty50 corrected 221.15 points or 1.95 percent to 11,082.15.
Benchmark indices have now fallen in eight out of the last nine trading sessions.
The carnage was worse in the broader markets. Nifty Midcap and Smallcap indices plunged 3 percent each amid weak breadth.
About four shares declined for every share rising on the NSE.
Here are four factors that weighed on the markets:
Rising coronavirus cases in India
A surge in coronavirus cases has further put Indian markets in bear territory. At the time of publishing this copy, 28 cases were reported, however, no deaths have been confirmed yet.
"We were the most expensive market globally, which has been correcting due to coronavirus fears. ETF selling and deleveraging has been happening now. But it is not a big correction and we are not cheap yet," Ajay Srivastava of Dimensions Corporate Financial Services told CNBC-TV18. Trade Nivesh Investment Adviser
The novel coronavirus which was first identified in December last year in the Chinese city of Wuhan has now spread to 76 countries killing over 3,000 and leaving hundreds of thousands in quarantine.
Bank Nifty slumps as market await RBI action
Various central banks hinted policy initiatives to counter the economic slowdown in their respective countries.
Federal Reserve and the Reserve Bank of Australia cut interest rate by 50 basis points, each, while South Korea announced a $9.8 billion financial package to support the economy.
Participants now expect RBI to follow the suit. Get Live Intraday Level Trade Nivesh
However, the central bank's delay in providing stimulus has triggered sell-off in Bank Nifty as the index wiped out more than 1,000 points during the day.
"RBI should take this opportunity to cut both bands and cut repo rate in," Saurabh Mukherjea of Marcellus Investment Managers said in an interview to CNBC-TV18.
FIIs remain net sellers, rupee weakens
Foreign institutional investors (FIIs) continued their selling spree for the seventh consecutive session on March 3. Trade Nivesh Tradingview
They have now sold more than Rs 3,770 crore worth of shares in March so far. In February, there were net sellers to the tune of Rs 12,684 crore.
"We don't think the sell-off is India specific. We think outflows from India is on account on emerging markets basket sell-off," said Ayon Mukhopadhyay of IIFL.
The rupee has also shown weakness, hitting a 17-month low of 73.63 against the US dollar. It was down 12 paise to 73.41 a dollar at the time of publishing this copy.
Technical View
The Nifty50 fell sharply and formed large bearish candle which resembles a Bearish Engulfing pattern on daily charts.
A bearish candlestick pattern suggests that bears are back in control after the index ended in the positive on March 3.
A Bearish Engulfing Pattern consists of two candles. One candle is usually a small candle which is followed by a large black or red candlestick pattern that engulfs the short one or the previous candle.
"We expect that volatility will likely grip the markets as sentiments would be driven by updates on the spread of coronavirus. From the technical front, both the indices are still trading in a bearish territory as prices are holding below their 200-day exponential moving average. Therefore, we advise traders to remain cautious and keep a stock-specific view on the market," Shitij Gandhi, Senior Technical Analyst at SMC Global Securities told Moneycontrol.
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