Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty snapped a two day rise on March 20 and closed in the negative, though after witnessing a sharp rebound from the afternoon lows. At close, Nifty was down 0.65% or 111.7 points at 16988.4. Volumes on the NSE fell compared to the recent average. Broad market indices fell more than the Nifty reflecting higher panic among non-institutional players. Advance decline ratio fell to 0.39:1.
Asian markets fell on Monday and European markets were trying to recover after a negative open as steps taken by central banks to boost liquidity and a deal to rescue Credit Suisse failed to quell investor worries of severe turbulence in the banking sector. Investors worry banks are cracking under the strain of unexpectedly fast, large rate hikes over the past year to cool economic activity and inflation and the banking turmoil may cause a recession if it sets off a credit crunch.
Nifty has formed a bullish hammer on daily charts after forming two dojis, hinting at possibility of an upward reversal. 17146-16939 band needs to be broken on either side for accelerated move in that direction.