Markets so far today - March 6, 2020 - Deepak Jasani - Head Retail Research, HDFC Securities
Markets ended sharply lower on Friday after a gap down opening. A recovery from the lows helped the main indices to curb the losses to some extent. The Nifty lost 279.55 points or 2.48% to close at 10,989.45. Nifty recorded the third straight weekly decline.
Statements from Corporate chieftains helped bring some stability to the free fall in the stock price of Yes Bank. But the collateral damage to the broader market expecting second and third degree impact of this event was to be seen to be believed. Market participants now remember the IL&FS issue when a similar panic subsisted for some days and progress on recovery of money from IL&FS has been very slow so far. However Yes Bank being a scheduled commercial Bank, the situation of depositors is much stronger but the same cannot be said about the shareholders.The market sentiments could revive only if global markets settle down and fears of global slowdown recede soon.
Technically, with the Nifty moving down further, the short term trend remains down. The Nifty could test the recent lows of 10831-10637 in the coming week. Any pullback rallies could find resistances at 11035-11082.