FIIs continues selling spree for the sixth consecutive month; Smallcaps tumble up to 42%

Foreign Institutional Investors (FIIs) continued their selling spree for the sixth consecutive month, offloading equities worth Rs 21,231.25 crore in March so far.

Market Performance Overview

The broader indices erased some of the previous week's gains, underperforming the main indices in the shortened week ending March 13. Market pressure led to a decline in 116 smallcap stocks, which plunged between 10% and 42%.

During the week:

BSE Large-cap fell 0.8%

BSE Mid-cap lost 2%

BSE Small-cap dropped nearly 4%

The benchmark indices also ended in the red:

BSE Sensex dropped 503.67 points (0.67%) to close at 73,828.91

Nifty50 declined 155.3 points (0.68%) to settle at 22,397.20

All sectoral indices posted losses:

Nifty IT fell 4.5%

Nifty Media dropped 3.4%

Nifty PSU Bank declined 2.5%

Nifty Auto & Realty slid 2% each

Amol Athawale, VP-Technical Research at Kotak Securities, noted, "The benchmark indices traded within a tight range last week. While selective buying was seen in Financial and Pharma stocks, IT and Capital Markets were hit hardest, shedding over 4%."

Key Technical Levels

Support: 22,300/73,300

Resistance: 22,600/74,700 – 22,650/74,900

A breakout above 22,650/74,900 could push the market towards 22,800-22,900/75,500-75,800.

A drop below 22,300/73,300 may lead to selling pressure, dragging the index to 22,100-22,000/72,700-72,400.

For Bank Nifty, key levels include:

Support: 47,700 (double-bottom formation)

Upside targets: 48,600-48,800 if it stays above support

Downside risk: Below 47,700, it may slip to 47,300-47,000

FIIs vs DIIs

FIIs sold Rs 21,231.25 crore in March so far, with Rs 5,729.68 crore sold last week.

DIIs bought Rs 5,499.47 crore worth of equities.

Smallcaps See Steep Declines

The BSE Small-cap index dropped nearly 4%, with notable losers:

KR Rail Engineering, Gensol Engineering, EKI Energy Services, Max Estates, Coffee Day Enterprises, Orchid Pharma, Jai Corp, Veranda Learning Solutions, Triveni Turbine, BMW Industries, Suyog Telematics, Senco Gold, Geojit Financial Services, Sadhana Nitrochem—fell 15-42%.

Meanwhile, a few smallcaps saw gains:

Nacl Industries, Kolte-Patil Developers, Carysil, SEPC, Sarda Energy and Minerals, Mahanagar Telephone Nigam, Oriental Rail Infrastructure, Indostar Capital Finance, Krishna Institute of Medical Sciences, PC Jeweller, Transindia Real Estate, AAVAS Financiers—rose 10-31%.

Where is Nifty Headed?

Rupak De, Senior Technical Analyst, LKP Securities

Nifty is currently stuck between 22,350-22,550.

A break above 22,550 could trigger a rally.

A fall below 22,350 could weaken sentiment further.

Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities

Nifty saw a smart recovery but slipped back into weakness, forming a negative candle on the daily chart.

A move above 22,600 could reignite buying towards 23,000.

A fall below 22,300 may lead to further decline towards 22,000.

Ajit Mishra, SVP, Research, Religare Broking

Markets remained range-bound on expiry day, ending slightly lower.

A breakout from 22,250-22,650 range is expected soon.

Caution advised in midcap and smallcap stocks, which could continue underperforming.

Investors should watch key levels closely and remain cautious amid market uncertainty.

Disclaimer: The views expressed are personal opinions of market experts and should not be taken as financial advice. Please consult a certified professional before making investment decisions.