Benchmark Indices Crash Sharply Tracking Weak Global Cues; Nifty Drops To Below 16450

Tracking weak global cues and sharp pull back in the US markets overnight with all of the 3 major US indices seeing a jolt by up to 5%, Indian markets witnessed a crash as expected. Nifty at the opening was down by 231 points to 16441 while Sensex came down by 1.54% or 854 points. Nifty Bank and broader markets also came down in line crashing 1.8% each.

Benchmark Indices Crash Sharply Tracking Weak Global Cues; Nifty Drops To Below 16450

Top Nifty gainers in an otherwise weak market have been M&M and ITC, while laggards include Bajaj Finserv, Apollo Hospital, Hindalco, Bajaj Finance and Wipro

Earlier, during the week, RBI in an off cycle meet in order to curb inflationary pressure has announced key policy rate hike by 40 basis points, with repo rate now at 4.4%.

Later in the day RIL shall be announcing its results and earnings are expected to come in better on account of improved margins.

Shares of Sona BLW will be in focus after the firm's Q4 PAT surged 76% to Rs. 105 crore in comparison to Rs. 60 crore reported in the same period last year on account of lower employee cost and tax credit in respect of previous years.

Currently, the index is close to the 61.8 percent Fibonacci retracement level (15,671-18,114), and the 16,600 level would be critical. A break below 16,600 can drag the index lower towards 16,450 followed by 16,200 levels, says Malay Thakkar, Technical Research Associate at GEPL Capital.

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