Nifty, Sensex snap 3-day record breaking streak; IT, FMCG drag

Benchmark indices, NSE Nifty 50 and BSE Sensex, ended a three-day winning streak on Tuesday, March 5, 2024, amid weak Asian and global cues.

The blue-chip Nifty 50 ended 0.22 per cent lower at 22,356.30 and the 30-share BSE Sensex closed 0.28 per cent lower at 73,668.01.

Most of the sectoral indices ended in red today, with Nifty IT leading the losses with a 1.59 per cent dip, closely followed by Nifty Media (-1.37 per cent) and Nifty FMCG (-1.05 per cent). Nifty PSU Bank, the top gainer among the sectoral indices, rose as much as 2.56 per cent. Nifty Auto rose 1.35 per cent during the day’s trade.

“Following a test of its robust support at 22,300, the index displayed another DOJI candlestick pattern, suggesting a state of indecision between the bulls and bears. If the price breaches the 22,460 level, there exists potential for a further upward movement towards 22,600 and 22,700. Conversely, the immediate support for the Nifty is identified at 22,300,” said Mandar Bhojane, Research Analyst, Choice Broking.

“Upon scrutinising the Open Interest (OI) data, the call side revealed the highest OI at 22,500, followed by the 22,800 strike prices. Conversely, on the put side, the maximum OI was observed at the 22,200 strike price,” Bhojane added.

Vinod Nair, Head of Research, Geojit Financial Services, said “The domestic market experienced range bound movement post hitting a new record high in the preceding day, influenced by the cautious trend in global peers ahead of the Fed Chair’s congressional testimony and key US jobs data. The absence of significant stimulus measures from China further dampened sentiment. Mid and small-cap stocks continued to underperform due to their higher valuations.”

“The IT sector sustained recent losses amid concerns over delays in rate cuts by the US Fed. However, PSU banks outperformed, while auto stocks gained momentum supported by healthy volume numbers and pick-up in rural demand,” Nair added.

Sensex top gainers