The benchmark indices closed higher for the second consecutive day today (March 9) ahead of the results of UP state election on Thursday. The Nifty index gained more than 2 percent, while Banknifty has increased by 1.9 percent to settle at 33,815.45 levels. Heavyweight Reliance Industries contributed 5 percent gains in the Nifty index. All the sectoral indices closed positively with Nifty Realty, Media being the top performers.
At close, the Sensex was up 1,223.24 points or 2.29 percent at 54,647.33. The broader Nifty was up 331.90 points or 2.07 percent at 16,345.40. About 2585 shares have advanced, 681 shares declined, and 90 shares are unchanged.
Among top Nifty gainers were Asian Paints, Reliance Industries, Bajaj Finance, M&M and IndusInd Bank. Shree Cements, Power Grid Corporation, ONGC, NTPC and Coal India were the biggest losers.
Even though oil prices surged due to a US import embargo on Russian oil, Indian benchmark indices were off to a strong start today, said Mohit Nigam, Head-PMS, Hem Securities. Buying was seen across the BSE sectoral front, with stocks from the Energy, TECK, and IT counters attracting the most attention. The general market breadth is in favor of increase today.
On a daily chart, the index has confirmed the Bullish Engulfing breakout, which suggests further bounce for the near term,, said Sachin Gupta, AVP-Research, Choice Broking. Moreover, the index also took support at Lower Bollinger Band and moved above it. On an hourly chart, the index has formed a rounding bottom and witnessed a positive crossover in RSI & Stochastic. At present, the index has support at 16,200/16,000 levels while resistance comes at 16,770 levels. On the other hand, Bank Nifty has support at 33,200 levels while resistance at 34,500 levels.
Markets were already in an oversold position and the global rout had transmitted into Indian gauges due to the raging war. Even though the market has gained momentum, India VIX has come down nominally, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. On March 10, day of the weekly expiry of the index options, we can see a sharp contraction in the volatility index only after the announcement of the election results. Nifty may see supports at 16,200 and 16,100 levels. At higher levels, above 16,420, the index would bounce back to 16,480 or 16,600 levels. A close below 15,980 would be negative for the market.
The benchmark Nifty took over the positive baton from yesterday’s trade buoyed by reports that foreign ministers of Russia and Ukraine are due to meet Thursday in Turkey to find a solution to the ongoing war, said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd. On March 10, all eyes will be on poll results-- will the ruling BJP get a clear majority in Uttar Pradesh. Nifty is aiming its 200 DMA at 16,953 mark, while weakness could be seen below the psychological 16,000 mark.
European markets rebound
European markets rebounded as buyers bought stocks that had been battered in the recent market selloff. After Ukrainian President Zelenskyy announced the country was no longer interested in NATO membership, investors bought beaten-down shares in the hopes of de-escalating the Russia-Ukraine war. Net domestic positive flows are currently sustaining the enormous withdrawals observed by FIIs on a daily basis. The robust SIP flow of 11k crore monthly, which continues to expand, accounts for a substantial portion of the positive flows.
Crude jumps 4%
Stock markets fell in volatile trade and oil prices jumped 4% to $127 per barrel on Tuesday after the United Stated and Britain moved to ban Russian oil imports, raising fears of global stagflation, Reuters said. Russia warned earlier this week that it could reduce supplies to Germany via the Nord Stream 1 pipeline.
Rouble tumbled after US slaps import ban on oil
Most emerging market currencies and stocks bounced on Wednesday from sharp falls amid the Ukraine crisis and fears of rising inflationary pressures, while Russia's rouble tumbled as the United States slapped an import ban on its oil. US President Joe Biden on Tuesday imposed an immediate ban on Russian oil and other energy imports in retaliation to Russia's invasion of Ukraine.
The rouble tumbled more than 15 percent in Moscow as it resumed local trading for the first time this week, while its interbank rate fell over 5 percent by 0926 GMT. In its latest step to ease pressure on the rouble, Russia's central bank said on Tuesday citizens with foreign currency accounts would not be allowed to withdraw more than $10,000 in total over the next six months. Last week, the bank had reduced the commission for buying foreign currency through brokers to 12 percent.
(With inputs from Reuters)
