BSE Sensex and Nifty 50 staged a smart recovery in the last hour of the Tuesday’s trade. Headline indices fell 1.10 per cent during intraday deals. In fag-end of the session, indices defied the Russia-Ukraine crisis, rising commodity prices, among others, and recouped all the intraday losses to end in the positive territory. BSE Sensex ended 581 points or 1.10 per cent up at 53,424, while NSE Nifty 50 settled at 16,013, up 0.95 per cent or 150.30 points. Index heavyweights such as Infosys, Tata Consultancy Services (TCS), ICICI Bank, Housing Development Finance Corporation (HDFC), among others, contributed the most to the indices gain. Broader markets outperformed frontline indices. S&P BSE Midcap index soared 1.46 per cent or 322 points to end at 22,431, while S&P BSE SmallCap index rallied 1.33 per cent or 341 points to finish trade at 26,022. India VIX, the volatility index, was down 2.53 per cent to 28.59 levels.
Vinod Nair, Head of Research, Geojit Financial Services
Domestic indices reversed its trend and traded with gains led by export-oriented sectors like Pharma and IT which witnessed buying interest as the rupee fell to its record lows. Favorable exit poll results of state election and low-level buying seen in mid and small caps also helped in adding optimism in the domestic market. Major western markets were also trading in the green while other Asian peers continued to trade in negative territory on fear of the impact of global inflationary pressure due to the ban on Russia’s oil export.
Rupak De, Senior Technical Analyst, LKP Securities
Markets witnessed a spectacular recovery as Nifty closed more than 300 off days low. On the daily chart, a bullish engulfing pattern has formed which suggests short term positive reversal. On the higher end, the index may move towards 16200/16400 over the short term. On the lower end, 15800 is likely to act as support.
Mohit Nigam, Head – PMS, HEM Securities
After purchasing resurfaced at low levels, benchmark indices returned to green. Early trades on European marketplaces show a slight upward trend. Due to a severe fall of the Indian Rupee vs the US dollar, investors sought a safer refuge in the sector, and shares of information technology (IT) in an otherwise weak market. On the technical front, immediate support and resistance in Nifty 50 are 15700 and 16200 respectively. Bank Nifty immediate support and resistance are 32400 and 33800 respectively.
Palak Kothari, Research Associate, Choice Broking
On a daily chart, the Index has formed a Bullish Marabozu kind of candle which suggests bounce can be seen. On a monthly chart, the index has taken support from previous support zones and bounced from there which adds strength for upside. Furthermore, the index given closing above 21-HMA as well as stochastic is also bounced from the oversold zone with a positive crossover which adds strength for the next day. At present, the index has support at 15650 levels breaching while resistance comes at 16100 levels. On the other hand, Bank nifty has support at 32500 levels while resistance at 33800 levels.
Mitul Shah, Head of Research, Reliance Securities
Domestic equity markets closed higher despite Russia and Ukraine’s failure to reach a deal on creating “humanitarian corridors” as bloodshed from Russia’s invasion increased. The geopolitical turmoil is expected to impact the Federal Reserve from an aggressive interest rates hike. Investors had previously considered the possibility of a 50 basis point rate hike. However, Fed Chair Jerome Powell signalled a 0.25% hike at the Fed’s policy meeting on March 15 and 16. Market may remain volatile due to the Russia-Ukraine crisis. Trend in global equities, the movement of rupee against the dollar and crude oil prices will dictate trend in the near term. The Indian economy is in good shape given the underlying stellar corporate earnings momentum, the cleansed balance sheets, improving asset quality of the banks, levers in place for capex cycle revival and credit off-take, probable manufacturing resurgence given PLI and other government reforms. This coupled with increasing DII participation can revive the markets gradually once prevailing clouds of uncertainty disappear. However, over near term war issue would have high negative bearings on global equity markets including Indian equities.