The Sensex fell 1.7 percentage all through the week, and the Nifty declined 1.6 percentage, while the BSE midcap became down a 0.3 percentage and the smallcap index was 1 percent.

Worries over a 2d COVID wave and weak worldwide cues dragged the indices over a percentage in the risky week ended March 26. Both BSE Sensex and Nifty50 closed at essential ranges of 49,000 and 14,500, respectively.
For the week, the Sensex fell 849.74 points, or 1.70 percent, to end at 49,008.5, and the Nifty50 declined 236.7 points, or 1.6 percent, to close at 14,507.3. However, the broader indices outperformed the primary indices. The BSE midcap becomes down 0.3 percentage, the smallcap index one percentage, while BSE500 dropped 1.3 percentage throughout the week.

On the weekly chart, the Nifty bounced back from the weekly 10-duration EMA. The moving average is now at 14,590, and the Nifty closed simply below it, as per week’s close, stated Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

“Previously, such drawback violations of this EMA has provided strong upside bounce in the next weeks in the past,” Shetti stated. “Having recovered from the lows in the closing weeks, the odds of also upside bounce might be alive in the market.”

On the sectoral front, the Nifty media index shed 6.6 percent, while Nifty car and energy indices fell four percent each. On the other hand, the Nifty pharma index added nearly two percentage.

“The market may continue to be below strain in the close to term amidst weak worldwide cues and fast-spreading 2d wave of COVID in India, that could affect the tempo of economic recovery,” stated Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Given the probability of high volatility continuing in the market a few times, traders might do well through staying calm and progressively collecting good quality agencies on declines in the market, he stated.

FII activity

Foreign traders remained net sellers in the cash segment of the Indian equity markets. Foreign institutional traders (FIIs) have been net sellers of more than Rs 6,000 crore stocks throughout the week. Still, domestic institutional traders (DIIs) have been net shoppers of more than Rs 4,500 crore in the same duration.
“FPI poured Rs 22,300 crore this month into Indian equities taking their overall inflows to $38 billion as of March 24, 2021. The December quarter flows of $20 billion have been the best in any quarter,” stated S Ranganathan, Head of Research at LKP Securities.

“FPI’s on Friday has emerged as the largest non-promoter owner of financial shares in India as of the December quarter, and we assume this trend to accelerate also during the March quarter,” he added.

Technical View

Every week, the market completed a corrective sample, and the Nifty could see a level of 14,750 or 14,900 till it breaks to 14,250.

“During the week, the dollar index became the largest factor that dragged the market sentiment. In the coming week, once more, the trend of the market might largely depend on the trend of the dollar index,” stated Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

The Bank Nifty is also expected to move to 34,700 above the resistance at 33,700. The attention needs to be on FMCG and capital goods, Chouhan added.