The Indian stock market came under renewed selling pressure in Wednesday’s session, March 11, following a brief rally, as high crude and gas prices, caused by the ongoing US-Iran war, have kept risk-off sentiment elevated.
Concerns about higher inflation stemming from rising energy prices are holding investors back from making fresh bets, leaving domestic equities struggling to find a floor. The spike in energy costs has heightened concerns that global interest rates could remain elevated for longer, which is further prompting overseas investors to trim their positions in emerging markets.
After a 1% rally in the previous session, the Nifty 50 reversed its gains, falling 1.63% to the 23,866 level, while the BSE Sensex also dropped sharply by 1.72% to the 76,863 level. The broader markets, too, saw heavy bleeding, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling 1.25% and 0.36%, respectively.
Selling gripped all major sectors, with the auto pack hit the hardest, as the Nifty Auto crashed 3.15% while the Nifty Private Bank tumbled 2.41%.
Stock market today
Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, said that the Nifty 50, in the last three sessions, has witnessed high fluctuations with gap-ups and gap-downs and was once again subjected to heavy profit booking, tanking sharply with a huge bearish candle formation on the daily chart and closing near the 23,850 zone, with bias and sentiment very much precariously placed.
Parekh noted that the Nifty 50 index would have the recent low made near the 23,700 zone as the important and crucial support level to be watched in the coming sessions, which needs to be sustained failing that, the overall sentiment can turn very much bearish.
Commenting on the banking index, the analyst said Bank Nifty witnessed heavy profit booking, sliding steadily as the session progressed to end near the 55,700 zone, with sentiment maintained with a nervous approach and no signs of easing in the Middle East geopolitical tensions.
She added that the index would now have the previous major low made near the 53,600 zone as the crucial and important support, which needs to be sustained to maintain the overall trend intact. Only a decisive move above the 200-period moving average at the 57,500 level can improve the bias thereafter to establish some conviction.
Parekh further said that the support for the day is seen at 23,700 levels, while resistance is seen at 24,100 levels. Meanwhile, Nifty Bank would have the daily range of 55,000–56,500 levels.
Vaishali Parekh’s stock recommendations for today
Regarding stocks to buy and sell today, Vaishali Parekh recommended three buy-or-sell stocks for intraday trading: PNB Housing Finance, Adani Green Energy, and Oil India.
1] PNB Housing Finance: Sell at ₹784, Target ₹750, Stop Loss ₹800.
2] Adani Green Energy: Sell at ₹855, Target ₹830, Stop Loss ₹870; and
3] Oil India: Buy at ₹480, Target ₹500, Stop Loss ₹470.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
