Daily Markets View - March 25, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices suffered sharp swings on either side on March 25 as the March series F&O expiry had a volatile close. A second sharp selloff post 1445 Hrs meant that the Indices closed almost at the intra day lows. At close the Nifty 50 too fell 1.5% or 224.5 points to end at 14,324.90.

Volumes on the NSE were higher than recent averages. Falling volumes were higher on all three occasions during the session. Broader markets underperformed the benchmark indices in today's session. The Nifty Midcap index fell 2% while the Smallcap index declined 2.2%. Among sectors, Media, Auto, PSU bank, FMCG, IT and Realty were the loss leaders while Metals was the only sector that ended in the positive.

Asian equities swayed between gains and losses on Thursday as a selloff in Chinese technology shares due to concerns they will be de-listed from U.S. bourses and worries about a semiconductor shortage rattled some investors. European stocks pulled back slightly on Thursday, as investors consider the consequences of a surge in coronavirus cases in the region (Germany saw the biggest increase since Jan. 9), and EU leaders discuss possible blocks on vaccine exports.

Nifty has seen acceleration in its downtrend after it breached the crucial level of 14788. In the process it has filled the upgap made on Feb 02. A sharp rise in COVID-19 cases globally and reports of lockdown seems to have eroded investors' risk appetite. Hardening bond yields, and rising inflation are also not helping matters. Although the indicators / oscillators are oversold, we are not sure as to whether a bounce will come from these levels or after falling to 13966.

Source : Equity Bulls

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