The benchmark indices closed positive at the end of trading day after the market took a breather. After a positive opening, the index showed strength throughout the sessions and closed with a gain of 509.65 points. Bank Nifty closed the session at 38,170.10 with a gain of 1261.55 points. Forty-eight out of Nifty 50 stock sclosed in the green, indicating broad-based buying. BSE midcap and smallcap indices rose 2 percent each. All sectoral indices ended in the green, led by auto, bank, capital goods, IT, and FMCG up 2-3 percent.
At close, the Sensex was up 1,736.21 points or 3.08 percent at 58,142.05. The broader Nifty was up 509.70 points or 3.03 percent at 17,352.50. About 1,996 shares have advanced, 1,286 shares declined, and 90 shares are unchanged.
Among top Nifty gainers were Tata Motors, Eicher Motors, Bajaj Finance, Shree Cements and Hero MotoCorp. Among the losers were Cipla and ONGC.
Palak Kothari, Research Associate, Choice Broking said, On a daily chart, the Index has taken support from 200 DMA as well as a lower band of Bollinger and formed a big bullish candle which covered the previous gap which suggests strength in the. On an Hourly Chart, the index has given closing above21*50-HMA with the positive crossover which suggests upside momentum for the next session. Moreover, the daily momentum indicator Stochastic & MACD are also trading with a positive crossover which adds strength to prices. "At present, the Index has support at 16,800 levels while resistance comes at 17,500 levels. On the other hand, Bank Nifty has support at 37,300 levels while resistance at 39,000 levels."
Markets in consolidation phase
The upward movement comes a day after a sharp correction took place on the back of heightened tensions between Russia and Ukraine. Accordingly, on Tuesday attractive stock valuations brought a healthy influx of domestic institutional as well as retail funds into the market.
Globally, however, Asian stocks slipped on Tuesday as traders parsed geopolitical risks and worries about Federal Reserve policy tightening.The market is currently in a consolidation phase. Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities, said, "We believe investors should utilize this increase in volatility to build positions in quality large-cap and mid-cap stocks as the earning expectations for Indian corporates remain strong.”
It was more of a relief rally after the markets had been on a downward curve for the last few sessions. However, the ongoing concerns like geo-politicial tensions, US rate hike and rising inflation could continue to keep investors on the edge and the markets may remain volatile, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. On daily charts, the Nifty has formed long bullish candles which indicate the continuation of a pullback rally in the near term. However, in the short term, the market is still holding lower top formation and is trading below the 50 day SMA which is largely negative for the index. For Nifty, 17450 and 17550 would be the immediate hurdle. As long as the index is trading above 17,200, the uptrend texture will continue till 17,450-17,550 levels. On the flip side, a quick intraday correction is not ruled out if the index trades below 17,200. Below the same, it could hit the level of 17,100-17,050, Chouhan said.
Technically stay light and be nimble as major confirmation of strength only above Nifty 17807 mark. Only above 17,807 mark, bulls will heave a sigh of relief, said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.
FIIs net sellers
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday, as they offloaded shares worth Rs 4,253.70 crore, according to stock exchange data.
Asian bourses close with losses; European stocks rebound
Asian stocks were mixed on Tuesday as traders parsed geopolitical risks and worries about Federal Reserve policy tightening. European stocks jumped after the Russian Defense Ministry reportedly announced that it had begun returning some troops to deployment bases after training exercises near the Ukrainian border.
After opening marginally lower, the pan-European STOXX 600 index rose 1.1 percent after ending Monday 1.8 percent lower, Reuters said. Stocks rallied on report that some Russian troops military districts adjacent to Ukraine are returning to their bases after completing drills, a move that could de-escalate frictions between Moscow and the West.
Global crude oil benchmark Brent Futures fell 2.44 per cent to $94.13 per barrel on Tuesday.