The stock markets closed on a positive note on March 22 after a day marked with volatility. The Nifty index wiped out its early losses and recovered more than 1 percent to close at 17315.50 levels while Banknifty managed to settle at 36348.55 levels with 330 point gains. The heavyweight Reliance Industries contributed 2.5 percent gains in the index.
The benchmark Sensex was up 696.81 points or 1.22 percent at 57,989.30. The broader Nifty was up 197.90 points or 1.16 percent at 17,315.50. About 1,573 shares have advanced, 1,745 shares declined, and 99 shares are unchanged.
On the sectoral front, Nifty IT and Energy added almost 2 percent gains while realty and FMCG lost 1 percent in a day. Among major gainers on the Nifty were Tech Mahindra, BPCL, Tata Motors, Reliance Industries and IOC. HUL, Nestle India, Britannia Industries, Cipla and Divis Lab were among the laggards.
There was strong buying support in IT stocks. Tech Mahindra surged 3.83 percent to Rs 1538.45. TCS surged 2.09 percent to Rs 3700.95. Infosys rose 1.87 percent to Rs 1887.30. Wipro rose 1.62 percent to Rs 609.90. Bajaj Finserv 2.46 percent higher at Rs 16574.85; ITC 2.21 percent higher at Rs 249.80; Kotak Bank 1.88 percent higher at Rs 1808.65; Power Grid Corporation 1.85 percent higher at Rs 208.70 and Bajaj Finance 1.67 per cent higher at Rs 6985 were among the major Sensex gainers.
Only four of the 30 Sensex scrips closed in the red. Hindustan Unilever slumped 2.81 per cent to Rs 1993.80. Nestle India dipped 2.49 per cent to Rs 17415.65. NTPC and Sun Pharma also closed in the red
On the technical front, the nifty index has formed a bullish candle after taking a support at 50 percent Retracement Levels and moved above 50 days Exponential Moving Averages that suggests a bullish strength for the coming day, said Sachin Gupta, AVP-Research Choice Broking. All important key indicators like RSI, Stochastic & MACD witnessed positive crossover that supports the bullish bias. At present, the index has support at 17,000 levels while resistance comes at 17,470 levels. On the other hand, Bank nifty has support at 35,700 levels while resistance at 37,000 levels.
Volatile markets
Market was quite volatile today where some pressure was seen in the morning session trade but a positive sentiment was seen in the second half. US 10 year yield have crossed 2.3 percent and there are expectations that Fed will raise rates by 50 bps in its May-June meeting, said Mohit Nigam, Head - PMS, Hem Securities for Tuesday March 22.
"We believe inflation may be a concern for investors in the near-term so investors should focus on quality stocks with strong growth visibility and where the rise of commodity prices have minimal impact on their business."
A positive trend in other Asian and European indices gave a major boost to local gauges. Despite the recovery, uncertainty in the market is likely to prevail and investors will continue to brace for more sharp gyrations in next few sessions, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. The rising US bond yield and uptick in crude oil prices can unsettle the markets going ahead and investors need to be really careful about this before taking a major exposure.
Technically, the index took the support near the 200 day SMA or 17000 and reversed quickly. It also formed a long bullish candle on daily charts which is broadly positive. For the trend following traders, now the 50-day SMA or 17,200 would act as a trend decider level. Above the same, the uptrend wave will continue till 17,380-17,435, while below 1,7200 the uptrend would be vulnerable.
Nifty bulls shrugged off Powell’s hawkish remarks as markets staged a remarkable rebound, primarily led by Reliance Industries on reports of strong GRMs due to low inventory levels along with disruptions in product supplies, amid ongoing geopolitical tensions. Prashanth Tapse, Vice President (Research), Mehta Equities Ltd said, investors will continue to monitor the Russia–Ukraine stand-off which has not yielded any significant progress, raising fears of further sanctions and prolonged disruption to oil and metals supply. As of recording, WTI Oil prices were hovering around $108 a barrel. Technically, the make-or-break Nifty’s support seen at psychological 17,000 mark. We suspect, the technicals are aggressively bullish which should take Nifty above its biggest hurdles at 17,807 mark.
SEBI nod for IPO
Sresta Natural Bioproducts Ltd, Maini Precision Products Ltd and Campus Activewear Ltd got SEBI’s nod to launch IPO.
Global shares gain as investors watch Ukraine situation
Gobal shares rose Tuesday as investors eyed the war in Ukraine and inflationary risks including rising energy costs. Benchmarks rose in Europe in early trading, while they finished higher in Asia. France's CAC 40 added 0.1 percent to 6,587.92. Germany's DAX edged up 0.4 percent to 14,382.47. Britain's FTSE 100 rose 0.3 percent to 7,467.84. The future for the Dow industrials was 0.3 percent higher and the S&P 500 future rose 0.2 percent.
Rupee pares losses
The rupee pared its initial losses to settle flat at 76.18 (provisional) against the American currency on Tuesday, tracking a positive trend in domestic equities.
At the interbank foreign exchange, the rupee opened sharply lower at 76.39 against the US dollar. However, it recovered all its losses to closed at 76.18.
During the day, the local unit witnessed heavy volatility amid concerns over global oil supplies and saw an intra-day high of 76.10 and a low of 76.48.
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd, said USDINR spot closed 6 paise higher at 76.17, after a volatile session. A sharp run up in oil prices in the morning, coupled with a spike in US yields caused USDINR to aim for the resistance level of 76.50. However, selling from exporters and PSUs pulled the pair back below 76.20 on spot. As oil prices reversed , equity markets rallied. This added further pressure on the USDINR. Over the near-term, we expect USDINR to trade within a range of 75.80 and 76.50.
On Monday, the rupee slumped 34 paise to close at 76.18 against the US dollar.
(With inputs from Reuters)
