Benchmark indices Sensex and Nifty snapped their three-day winning run to close down by half a percent on Friday due to selling in financial and IT shares amid weak global market trends. However, in the broader market, the BSE midcap gauge fell 0.75 percent, and smallcap gauge dipped 0.24 percent.

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Also, earnings have not gone in the right direction and that is a worry. The mood is pretty somber and it has been that way for the last couple of weeks since the Union Budget 2023, there is no clear sense of direction, and unable to break out of the range as well. So those are the three things, which kind of define the market mood.

Both local and global queues are also largely unsupportive. So if you take a broad basket of say, the NSE 500 companies, ex-financials companies have seen profits dropped 12 percent on a year-on-year basis and this is broad-based data.

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In terms of global stuff – it isn't very clear, the data is all good. But is that meant to be sort of good for markets or it's meant to be bad for the markets and, there the conclusion is sometimes it is good, sometimes it is bad and that is why it is a bit confusing.

US yields have run up quite a bit, about 50 basis points in the last six or seven trading sessions, that is 10 years. The Dollar Index is back at 104, which means it's now erased all of its losses this year. It's come back very, very strongly.

S&P 500 on Thursday closed below 4,100; 4,100 is a key support level, it's a bit of a battleground area, a weekly close, which is the Friday session, a weekly close under it, I think will get a lot of people to wonder whether downsides are opening up.

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The 10-year is already searched quite a bit, but I think if it breaches 3.9 percent on the upside, it would suggest a return to the high of 4.33 percent from where it saw a massive fall. It's not very far by the way.

Here in India, the Nifty on Friday has fallen within back that range. The range is that Budget day candle - the high was almost 18,000 and the low was 17,350 or so and Nifty is back within that range once again.

Bank Nifty never managed to break out the range like the Nifty and that remains kind of range bound. For the 12th session, the Bank Nifty has spent in that February 1 candle that it saw. It was a very large candle, very large volatile moves.

First Published:Feb 17, 2023 6:38 PM IST