Sensex and Nifty have now erased all gains made since February 3 as bears continued to wreak havoc on Dalal Street for the fifth consecutive session. S&P BSE Sensex dived 1,145 points to end at 49,744. 50-stock NSE Nifty ended at 14,676, giving up 15,000 mark initially in the day and then falling below 14,700 which again as a support level. Amid this, India VIX or the fear gauge of domestic markets zoomed 15% to close above 25 levels. Monday’s trading session left investors poorer by Rs 3.78 lakh crore.
Indian benchmark equity indices fell the most in two months on Feb 22, ending lower for the fifth consecutive session. Nifty has fallen 5% from its all-time high in about 5 sessions. Indian equities came under selling pressure due to Cautious trade in markets abroad, Slowing FPI inflows, profit-taking and breach of key technical levels. Rising crude oil prices that could impact the macros and inflation and rising 10-year Gsec yields were the key local factors that shook the equity markets. Also, markets have run up quite sharply since the end of January 2021.
Nifty saw a fast decline as it lost 300 points over the close of the previous day. The price action showed a long red candle that has closed that the lows of the day and the range of the candle highest in the last 8-10 days. Nifty is in oversold territory as short-term oscillators show oversold reading. After a fall of such magnitude, there is a relief rally. As we go into the last few days of February expiry expect the volatility to be high.