Sensex crashed 1,690 points, Nifty plummeted 2.09%

Benchmark indices snapped their two-day winning streak on March 27, weighed down by a sharp depreciation in the INR, a spike in crude oil prices amid escalating Middle East tensions, and continued selling pressure from FIIs. At the close, the Sensex declined by 1,690.23 points (2.25%) to settle at 73,583.22, while the Nifty fell 486.85 points (2.09%) to end at 22,819.60.

On the sectoral front, selling was broad-based, with all major sectors ending in negative territory. The steepest declines were recorded in PSU Banks, Private Banks, Realty, Auto, and Consumer Durables, each falling in the range of 2–4%. Notably, no sector offered any meaningful support to the indices during the session.

The broader markets also mirrored the negative sentiment, with the Nifty Midcap index declining by 2.23% and the Small cap index falling by around 1.74%, largely in line with the benchmark indices.

Nifty Outlook                            

According to the Bajaj Broking Market Commentary, the index formed a sizable bearish candle with a lower high and a lower low signaling resumption of downtrend after two sessions of pullback.

The index in the coming weeks is likely to consolidate in the range of 22,450–23,850 amid high volatility on account of the rising crude oil prices and escalating geo-political tension.

On the downside a breach below previous week low of 22,471 may trigger further downside towards 22,100 and 21,800 levels.

Index for a meaningful pause in the ongoing downtrend, the index needs to form higher high and higher low on a sustained basis in the daily chart and close above recent high of 23,862

Bank nifty Outlook

Index formed a sizable bearish candle with a lower high and a lower low signaling resumption of downtrend after two sessions of pullback.

Volatility is expected to remain elevated in the near term, driven by rising geopolitical tensions, and rising crude oil prices which continue to weigh on overall market sentiment. 

Index is likely to consolidate in the range of 54,150-51,400 in the coming sessions amid high volatility driven by rising geopolitical tensions and rising crude oil prices which continue to weigh on overall market sentiment. 

Within the consolidation range strength above Wednesday high (54146) will open further pullback towards 54,800 levels in the coming sessions. A breach below Friday’s low of 52,211 will open further downside towards last week low of 51,400.

Index needs to form higher high and higher low on a sustained basis and closed above last week high of 54,150 levels to signal a pause in the current downward trend.

On the downside a breach below last week low 51,323 will open further downside towards 50,700 and 50,000.