Smallcap Index Shows Resilience Amidst Sector-Wide Declines

Market Update: March 8-14, 2024

Key Figures:

• BSE Sensex: down 5.51% or 4,354.98 points to close at 74,563.92
• Nifty50: down 5.31% or 1,299.35 points to end at 23,151.10
• Foreign Institutional Investors (FIIs): sold equities worth Rs 35,052.03 crore in the fourth consecutive week
• Domestic Institutional Investors (DIIs): bought equities worth Rs 37,739.78 crore

Market Performance:

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The broader indices remained under pressure for the third consecutive week, with mid- and small-cap stocks relatively outperforming the benchmark indices amid weak global cues. The sentiment was weighed down by escalating US-Iran tensions and persistent FII selling.

Sectoral Performance:

• Nifty Auto: down 10.6%
• Nifty PSU Bank: down 7.2%
• Nifty Defence: down 7%
• Nifty Private Bank: down 7%
• Nifty Metal: down 6%

Technical Analysis:

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• Nifty50: formed a long bearish candle on weekly charts, indicating a weak formation
• BSE Smallcap index: shed 3.6% during the week, with Aqylon Nexus, Silver Touch Technologies, and Sapphire Foods India falling by up to 22%
• BSE Largecap, Midcap, and Smallcap indices: shed 5%, 4.5%, and 3.6%, respectively

Short-Term Outlook:

• Nifty50: may fall towards 22,800/73,600 before showing any signs of recovery
• BSE Sensex: may continue its correction wave until 73,600
• Bank Nifty: may slip to 53,000-52,500 if it falls below 54,500

Resistance and Support Levels:

• Nifty50: resistance at 23,400/75,000 and support at 22,800/73,600
• Bank Nifty: key level to watch at 54,500