The stock markets closed higher as the Assembly elections indicate BJP swept the polls in four states. All the sectoral indices ended in the green following increases in Bank, Realty, and Auto companies. Indian equities markets maintained their upward trend in the current session. BSE Smallcap and Midcap indices rose 1 percent each.
The benchmark index surged for the third consecutive day and gave a gap-up opening of 16,757 as positive global cues, easing oil prices and State election results fuelled the positive rally. In the second half, the index showed some correction after intraday high at 16,757.30 levels. The Nifty index gained more than 1.53 percent while Bank Nifty has increased by 1.95 percent.
At close, the Sensex was up 817.06 points or 1.50 percent at 55,464.39. The Nifty was up 249.50 points or 1.53 percent at 16,594.90. About 2,346 shares have advanced, 937 shares declined, and 94 shares are unchanged.
On the sectoral front, Nifty Realty, FMCG has gained 2-3 percent each followed by Nifty PSU and Auto with 2.50 percent and 2.00 percent respectively. Stocks like HUL, Grasim, IndusInd Bank were the top gainers while Coal India, Tech Mahindra and ONGC were the prime laggards.
Among the top Nifty gainers at the closing bell were HUL, Tata Steel, Grasim Industries, JSW Steel and SBI. The losing stocks were Coal India, Tech Mahindra, Dr Reddy's Labs, ONGC and TCS were the biggest losers.
The market's optimism has been fueled by the prospect of a favorable outcome from the Russia-Ukraine talks. Another encouraging development occurred when OPEC+ member the United Arab Emirate stated that it supports pouring more oil into the markets, which are experiencing a supply shortage due to US sanctions on Russian oil. If OPEC+ countries agree to raise output, crude oil gains could be limited in the ensuing session, said Mohit Nigam, Head - PMS, Hem Securities for Thursday March 10.
The BJP's strong showing in the state elections encouraged the bullish mood even further. On the global front, Asian markets were trading firm, following Wall Street's overall upbeat cues overnight, amid slightly easing inflation fears as commodities prices fell. Investors should stay cautious because the geopolitical stalemate remains unpredictable, but they can consider buying shares for long-term goals.
On the technical front, immediate support and resistance in the Nifty are 16,200 and 16,800. For the Bank Nifty, immediate support and resistance are at 33,500 and 35,500, Nigam added.
Technically, Index has covered the gap and bounce from the 89-HMA which suggest bounce back in the counter, said Palak Kothari, Research Associate, Choice Broking. On the Four-Hourly Chart, the index has formed a Hammer Candlestick pattern which points out northward direction in the counter. Moreover, the index has given closing above 21& 50 HMA which adds strength to the price. Momentum indicator is trading with a positive crossover which adds strength for the next day. At present, the index has support at 16,400 levels while resistance comes at 16,900 levels. On the other hand, Bank Nifty has support at 33,700 levels while resistance at 35,000 levels.
Investors cover their short position thanks to State polls
Investors further covered their short positions thanks to the state poll results in which the ruling BJP put up a strong performance. Markets also got a leg-up on strong global cues and hopes that talks between two foreign ministers of Russia and Ukraine in Turkey would look at easing conflict between two sides. Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "We are of the view that the short-term formation is still in the positive side but due to temporary overbought situation the market is likely to consolidate in the range of 16,400 to 16,800. For traders, 16,400-16,300 would act as important support levels. On the flip side, 16,800-16,875 could be the immediate resistance level for the bulls."
European stocks fall
European stocks fell 1.7 percent, with indexes in Germany and Britain losing 1.9 percent, and 0.9 percent, respectively, a reversal after futures gauges had suggested slim gains in early trade. Automakers suffered the most, falling 0.9 percent, Reuters said. Foreign ministers from Russia and Ukraine will meet in Turkey on Thursday in the first high-level talks between the two countries since Moscow invaded its neighbour, with Ankara hoping they could mark a turning point in the conflict.
Wall Street futures were down around 0.5 percent, after the S&P 500 posted its biggest one-day percentage gain since June 2020 on Wednesday.
Oil price steadies
Oil steadied after falling over 12 percent in the previous session as investors weighed whether major producers would boost supply to help plug the gap in output from Russia sparked by sanctions, Reuters said. Brent crude futures added over 3 percent on Thursday to $114.64 a barrel, and U.S. crude rose 1.73 percent to $110.58.
(With inputs from Reuters)
