February 28th 2024 Stock Market analysis

Indian Equities Decline as selling across sectors drags; Power grid corp of India Slides 4%

Wednesday witnessed a downturn in Indian indices as selling permeated across all sectors. Both the BSE Sensex and NSE Nifty closed in the red, as investors opted to book profits following recent short-term gains. Moreover, apprehension mounted amidst uncertainty surrounding the release of key economic data, including the US gross domestic product figures, which had the potential to impact global markets significantly. The Sensex concluded the day with a sharp decline of 790.34 points, representing a 1.1% drop, settling at 72,304.88. Similarly, the Nifty slumped by 247.10 points, also marking a 1.1% decrease, to reach 21,951.20.

Among individual stocks, Power Grid Corp. of India experienced significant losses, emerging as Wednesday’s top laggard with shares plummeting over 4%. This decline was followed by Apollo Hospitals Enterprise and Eicher Motors. Conversely, Hindustan Unilever, Infosys, and Tata Consultancy Services emerged as the top gainers of the day. In terms of sectors, media and public sector banks bore the brunt of the losses, reflecting the broad-based nature of the market downturn experienced on Wednesday.

Technical Outlook on 29th Feb

Nifty is anticipated to find immediate support levels around 21,873 followed by 21,795, with resistances seen at 22,029 and 22,107. Currently, Nifty appears poised for a profit booking rally to persist. Similarly, Bank Nifty may find immediate support around 45,738 then 45,513, while resistances are expected at 46,188 and 46,413. Presently, Bank Nifty also seems primed for a continued profit booking rally.

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Derivative Outlook on 29th Feb

PCR analysis:  Nifty's PCR-OI has decreased alongside a negative close, indicating a trend of call writing in the market.

Open Interest Analysis: Nifty future February contract witnessed a decrease in Open Interest accompanied by a negative close, indicating a scenario of Long Unwinding in the market.

Cost of Carry Analysis: Nifty February month contract concluded at a lower level compared to the March contract, with a negative range compared to the previous session, suggesting a prevailing negative bias in the market.

India VIX Analysis: Closing value of 16.33, up from 15.73 (DoD) basis, indicating a rise in volatility levels in the market.

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