March 11th 2024 Stock Market analysis

Market Plunge: Nifty Dips Below 22,350, Sensex Slumps by 617 Points; All Sectors in the Red

Indian markets concluded a two-day winning streak on a downtrend, with the Nifty closing below 22,350 as investors exercised caution ahead of tomorrow's release of US inflation data.

By the close of trading, the Sensex had fallen by 616.75 points or 0.83 % to 73,502.64, while the Nifty declined by 160.80 points or 0.71 % to 22,332.70.

Despite initially opening with a flat and positive bias, buoyed by Nifty reaching a fresh all-time high of 22,526.60, the market quickly relinquished its gains and slipped into negative territory during the early hours. Subsequently, selling pressure intensified across sectors, exacerbating the losses as the day progressed.

Among the top losers on the Nifty were Tata Consumer Products, Power Grid Corporation, Tata Steel, Bajaj Auto, and SBI, while Apollo Hospitals, Nestle India, Cipla, SBI Life Insurance, and Bajaj Finserv emerged as gainers.

All sectoral indices closed in the red, with auto, capital goods, FMCG, oil & gas, banking, information technology, realty, metal, and power sectors witnessing declines ranging from 0.5 to 1 percent each.

Technical Outlook on 12th March

Nifty is likely to find immediate support around 22,223 followed by 22,114, with resistances anticipated at 22,442 and 22,551. Currently, profit booking is expected from elevated levels in the Nifty.

Meanwhile, Bank Nifty may encounter immediate support around 47,016 and subsequently at 46,705, while resistances are projected at 47,639 and 47,950. Similar to the Nifty, profit booking is also anticipated in Bank Nifty from its recent highs.‍

Derivative Outlook on 12th March‍

PCR Analysis: Nifty PCR-OI has decreased with nifty has negative close which shows CALL WRITING.

Open Interest Analysis: Nifty future March contract OI has decreased with negative close which shows Long Unwinding.

Cost of Carry Analysis: Nifty MARCH month contract has ended in low compare with APR contract and high range compare with previous session which indicates a mixed trade.

India VIX Analysis: India VIX has closed at 14.00 vs 13.61 (DoD) basis which shows increase in volatility.‍

Torrent Power stock soars 12% to hit record high on securing Rs 1,540-cr solar power project‍

Shares of Torrent Power surged by 12.5 percent to reach an all-time high of Rs 1,287.5 per share following the company's successful bid to secure a 306 megawatt (MW) solar project in Maharashtra for Rs 1,540 crore. This achievement marks a significant milestone for the company, which has seen its stock soar by over 30 percent since the beginning of the year, outperforming the benchmark Sensex, which has risen by only 0.9 percent during the same period.

In an exchange filing dated March 7, Torrent Power announced that it had been awarded the letter of award (LoA) by the Maharashtra State Electricity Distribution Company (MSEDCL) to supply 306 MW of solar power under the Mukhya Mantri Saur Krushi Vahini Yojana 2.0 scheme for feeder-level solarisation under the PM KUSUM Scheme. These projects will be established at 48 distributed locations in the Nasik District, with the power to be procured by MSEDCL through a 25-year Power Purchase Agreement (PPA).

With the addition of this 306 MW capacity, Torrent's renewable capacity under construction has now increased to 1.7 gigawatts (GW). Upon the completion of these projects within the next 18-24 months, Torrent's renewable capacity will rise to 3 GW, further solidifying its position in the renewable energy sector.