Indian stocks are experiencing significant decline on Monday, March 9, following a surge of approximately 26% in oil prices during early trading, reaching their highest level since July 2022. According to latest market data, the Nifty 500 index has fallen 30.90 points to 36,033.30, while individual stocks show mixed performance with notable declines across multiple sectors. The escalating conflict between the US and Israel against Iran has raised concerns about reduced supplies and extended disruptions in the Strait of Hormuz, leading to widespread selling pressure across global markets.
On Friday, the Indian stock market ended sharply lower amid the ongoing US-Iran war, with the benchmark Nifty 50 slipping below the 24,500 level. As reported by LiveMint, the Sensex crashed 1,097.00 points, or 1.37%, to close at 78,918.90, while the Nifty 50 settled 315.45 points, or 1.27%, lower at 24,450.45. The 18% jump in crude oil prices had a ripple effect on the Indian Rupee, sparking a 40% spike in India VIX (fear gauge). Latest market data shows continued weakness with 360 One Wam down 30.90 points to 1,033.30 and 3M India falling 335.00 points to 33,985.00.
Dharmesh Shah of ICICI Securities recommends buying Astra Microwave Products Ltd. shares in the range of ₹1,005-1,035 with a share price target of ₹1,145 and a stop loss of ₹944. According to the analysis reported by LiveMint, Shah noted that defense and pharma sectors stood strong while profit booking was visible in financials, oil & gas, auto and realty space during the turbulent phase.
As reported by LiveMint, the Nifty 50 continues to respect its 20-month EMA at 24,300, a level that has held firm on multiple occasions post Covid-lows. The analysis indicates that historically, buying near 20-month EMA has yielded approximately 20% returns in subsequent quarters. Shah expects the market to gradually transition towards recovery phase in the coming month, noting that the current correction, now in its 18th month, appears to be approaching maturity.
According to the technical analysis reported by LiveMint, the percentage of stocks above 50- and 200-day SMA within Nifty 500 universe have pulled down to 30% levels. Historically, such contractions in breadth have preceded durable market bottoms, with extreme bearish readings in the range of 15-20%. The analysis suggests that portfolio construction during such geopolitical phases has historically been fruitful from a medium-term perspective, delivering double-digit returns in subsequent three months.
