Indian benchmark indices are likely to snap their losing streak to open in the green, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were trading higher, up 32.5points, at the 17,211.5 level. Domestic indices extended losses for the third session in a row. Nifty sank 258 points to close at 17,154, under the 17,200 mark. Sensex followed suit, crashing almost 900 points to end at 58,237.
“Bloodbath was seen in the global market as the fallout of Silicon Valley Bank was followed by turmoil at Signature Bank, keeping investors worried about the strength of the US banking system. Importantly, the Fed’s decision in the upcoming meeting will have a crucial impact on the market sell-off, as the consensus is reversing to no rate hike trajectory. Also, the US inflation due on Tuesday will have a vital impact in the short-term as the market anticipates a cool down from January levels,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Stocks in Asia-Pacific traded in red on Tuesday, despite Wall Street’s closure in the deep red. Japan’s Nikkei 225 traded lower by 2.50%, and South Korea’s Kospi tanked 2.23% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component traded lower by 0.55% and 0.98%, respectively. Hong Kong’s Hang Seng index crashed 1.13%.
Crude Oil
Oil prices slipped on Tuesday, extending the previous day’s slide, as the collapse of Silicon Valley Bank startled equities markets and raised worries about a fresh financial crisis. Brent crude futures fell 9 cents to $80.68 a barrel by 0101 GMT. U.S. West Texas Intermediate crude futures (WTI) dropped 16 cents to $74.64 a barrel. On Monday Brent fell to its lowest since early January, while WTI dropped to its lowest since December.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth Rs 1,546.86 crore, while domestic institutional investors (DII) net acquired equities worth Rs 1,418.58 crore on 13 March, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has GNFC on its F&O ban list for 14 March. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Technical View
“A long bear candle was formed on the daily chart with a long upper shadow. This reflects a display of sharp downside momentum in the market. The opening downside gap of 10th March has acted as a strong overhead resistance around 17,530 levels. The said downside gap remains partially filled.
“Nifty has been in a sharp downturn and the negative chart pattern like lower tops and bottoms are in store. Present weakness seems to be in line with the lower bottom formation, but there is no confirmation of any lower bottom reversal pattern yet at the lows. The next downside levels to be watched are around 17,000-16,800 in the near term. Any upside bounce from here could find strong resistance around 17,300-17,350 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch
“OI Data indicates, on the call side the highest OI is witnessed at 17,400 followed by 17,500 strike prices while on the put side, the highest OI was at 17,000 strike price. On daily charts, Bank Nifty has formed a big bearish candle, indicating that bears have taken control. Nonetheless the 40,800 level is crossed, sell on rise is advised for the short term,” said Om Mehra, Equity Research Analyst, Choice Broking.
February CPI
CPI inflation in February remained stubborn, printing at 6.44 per cent, as milk and cereal prices continued to play spoilsport. February retail inflation fell marginally from January’s 6.52%, but was way above RBI’s tolerance limit of 6%. It beat a Bloomberg poll estimate of 6.4%.