The Indian market bounced back sharply in the second half of the trading session on March 22 but the bulls failed to push the benchmark indices into the green. The S&P BSE Sensex recovered about 500 points from the lows, while the Nifty retested 14,600 and then bounced back.
The Sensex closed 86 points low at 49,771, while the Nifty50 closed 7 points lower at 14,736.
Buying was seen in realty, IT, FMCG, and healthcare, while profit-taking was seen in banks, finance, consumer durables, and public sector.
Broader markets outperformed the benchmarks. The S&P BSE midcap index was up 1 percent and the smallcap index 0.7 percent.
Fears of a second coronavirus wave and elevated bond yields kept investors on the edge, experts said. Crucial support for the Nifty is at 14,450-14,600, while resistance is placed at 14,900-15,000, they said.
“Fear of the second wave of Covid-19 elevated bond yield, and weak global cues are weighing on the domestic market. The expectation of the rise in inflation is also impacting the market,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“The market has marched well in anticipation of faster economic recovery and is taking a breather, given tightening restrictions and an increase in future interest rate, spiking fear of a slower recovery.”
Here is what experts suggest investors should do on March 23:
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited
The Nifty50 formed a Doji candle on the daily scale and negated the formation of lower highs of the past few sessions.
Now, it has to hold above 14,700 to witness an up move towards 14,900 and 15,000, while on the downside, immediate support exists at 14,600 then 14450.
Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.in
For the time, short-term traders are advised to wait for a decisive move beyond 14,790 to go long for an initial target of 14,950 by placing a stop below the intraday low.
The Nifty formed a Hammer pattern and is in the trading range of the previous day. Such a formation invites a trending and massive activity on either side.If the market goes above 14800 on March 23, the Nifty is likely to go up to 14,950-15,000. It would be a crucial day for the market.
Investors can stick to a buy-on-dips strategy. The 14,680-14,570 levels would be the main supports.
Small traders can take long positions with a stop loss of 33,300 or can take short positions below the level. Technology and FMCG stocks should be on the watch list.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.