Sensex up over 670 points, Nifty crosses 16,500-mark in noon trade as ruling BJP races ahead in state assembly elections

Sensex up over 670 points, Nifty crosses 16,500-mark in noon trade as ruling BJP races ahead in state assembly elections

FPJ Web DeskUpdated: Thursday, March 10, 2022, 02:03 PM IST
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At 1.53 PM, the BSE Sensex was 673.83 points or 1.23 percent up at 55,321.16. The broader Nifty50 was 160.25 points up or 0.97 percent at 16,505.60./AFP PHOTO/ Indranil MUKHERJEE |

The Indian stock markets witnessed a strong recovery at noon trade after positive news flows on the Russia-Ukraine standoff that led to a rally in global equity markets and cool off in commodity prices. The benchmark stock market indices are in an exuberant mood since the results of the Assembly polls are being revealed. All sectoral indices are trding in the green. BSE midcap and small indices are up over 1 percent each.

At 1.53 PM, the BSE Sensex was 673.83 points or 1.23 percent up at 55,321.16. The broader Nifty50 was 160.25 points up or 0.97 percent at 16,505.60.

The outcome of state election results is also acting as a tailwind for the Indian equity market however it has the impact of only one day and the main focus of the market will remain on the Russia-Ukraine issue because there are still uncertainties.

Santosh Meena, Head of Research, Swastika Investmart Ltd. , said, US inflations numbers will be announced today which is likely to come at a five-decade high and it will act as a critical factor in the upcoming US Fed meeting. Markets are likely to remain volatile till the Fed meeting, he said.

Technically, Nifty witnessed a smart pullback from the 15,700 level. However, 16,800-17,000 is a critical supply area that Nifty has to take out for any trend reversal otherwise there is a risk of sell-off after this pullback. On the downside, 16,500-16,400 is an immediate support zone while 16000/15500 is the next critical support level. If Nifty manages to take out the 17,000 level then the bulls will be back in the game where 17,00/17,500 are the next resistance levels, Meena said.

Short-term traders should watch market behavior in the 16,800-17,000 zone then trade accordingly while long-term investors should continue to accumulate good quality stocks. Meena said, "Our top preferred sectors are capital goods, infrastructure, real estate, and financials however rising commodity prices are a major challenge in the near term. IT stocks may continue to do well after a recent correction while some private banks like HDFC Bank, Kotak Bank, and ICICI Bank are looking attractive after a recent fall."

FIIs remain net sellers

Foreign institutional investors remained net sellers in the capital market on Wednesday as they offloaded shares worth Rs 4,818.71 crore, as per stock exchange data

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