26 Mar , 2024 By : Debdeep Gupta
Sensex, Nifty fall amid volatility; analysts say consolidation likely to continue, In the absence of any major triggers, analysts expect markets to remain rangebound in this holiday-shortened week
Benchmark indices the Sensex and the Nifty traded low on March 26 morning on muted global cues. Higher volatility in a holiday-shortened week also bogged down investors' risk sentiment ahead of the monthly F&O expiry. In the absence of any major triggers, analysts expect markets to remain rangebound this week.
The Sensex and the Nifty declined 0.2 percent each to 72,642 and 22,053. India VIX, which measures expected volatility over the next few days, jumped more than 6 percent to trade around 13.
VK Vijayakumar, Chief Investment Strategist, at Geojit Financial Services, said that markets would see some consolidation during the week as traders navigate stretched valuations in small-caps despite the recent correction. "Traders will be in the wait-and-watch mode and we advise you to buy every dip into quality large-cap stocks," he added.
For the day, Vaishali Parekh, Vice-President of Technical Research at Prabhudas Lilladher chalked out 22,250 as Nifty's resistance, while on the lower side, she maintained a support of 21,950. "Nifty's sustenance above 22,000-zone is crucial and necessary to carry its upward movement. This, would, thereafter retest previous peak levels of 22,525 in the upcoming days," she added.
All sectors swayed between red and green. Nifty Metal managed to gain 0.2 percent within the first hour of trade led by gains in Jindal Steel, Adani Enterprises, NALCO, and NMDC. On the flipside, the Nifty Media index was the worst sectoral performer as it lost 0.6 percent.
Global markets muted
Globally, the US markets took a breather from last week's rally and ended lower overnight. Dow Jones, tech-heavy NASDAQ Composite, and the S&P 500 indices slipped up to 0.4 percent. The pullback came after last week's gains, during which all indices reached all-time high closing levels.
Meanwhile, Asia-Pacific markets were largely mixed this morning, with Japan's Nikkei 225 trading flat, while South Korea's Kospi was up 1 percent, and Australia's S&P 200 index fell marginally.
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