The benchmark indices closed the day (March 30) with remarkable highs. The Nifty index continued the rally throughout the day led by MEDIA, PSUBNAK, REALTY & AUTO sector. BSE Sensex added 740 points while the Nifty50 zoomed 173 points. Bank Nifty index gained 1.38 percent to settle at 36,334. India VIX ended in the red.
At close, the Sensex was up 740.34 points or 1.28 percent at 58,683.99. The broader Nifty was up 173 points or 1 percent at 17,498.30. About 2,001 shares have advanced, 1213 shares declined, and 93 shares are unchanged.
Among top Nifty gainers on the bourses were Bajaj Finserv, HDFC Life, Tata Consumer Products, Bajaj Finance added 3 percent gains. The top laggards were ONGC, Hindalco, JSW Steel lost 5 percent in a day.
On March 29, the 30-share BSE Sensex jumped 350.16 points or 0.61 percent to settle at 57,943.65 with 20 of its constituents closing higher. The Nifty gained 103.30 points or 0.60 percent to settle at 17,325.30 as its 32 components closed in green.
"High volatility prevailed in the global market, but peace talks between Russia and Ukraine gave hopes of de-escalation of the war, helping the domestic market to trade with confidence," said Vinod Nair, Head of Research at Geojit Financial Services to IANS.
The ease in crude oil and commodity prices supported the market as it will help corporates to reduce their margin pressure, said Nair.
Technically, the index has been rising continuously from the last three trading sessions and moved above the prior swing highs, said Sachin Gupta, AVP-Research, Choice Broking. Moreover, the index has sustained above 100-EMA on the daily chart that suggests a bullish strength for the coming day. A momentum indicator RSI (14) is moving above 60 level & MACD is indicating positive crossover, supporting the bullish trend. At present, the index has support at 17,340 levels while resistance comes at 17,650 levels. On the other hand, Bank Nifty has support at 35,700 levels while resistance at 36,900 levels.
Nifty trades around its trend resistance level of 17,670. Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, said, the short-term parameters of the markets look positive but for confirmation of uptrend resumption closing above 17,670 remains important. Value is seen in FMCG and select NBFC stocks while commodities continue to remain volatile.
Recovery seen in market
In the last two weeks, some recovery is visible in the market from the oversold zone led by key drivers like peace talk between Russia-Ukraine, FED decision on an expected line, and State election results in favor of the ruling government, said Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities. With all these developments, risk appetites are back in the market with India VIX now trading at around 21 levels which is slightly below the long-term average of 22. Investors’ sentiments further improved with ease in crude prices that lead to more buying interest, especially towards riskier assets like equity.
In the near term, market performance is likely to be range-bound, as the clear trend is likely to emerge only after the volatility sustains at current levels for a longer time. Q4FY22 earnings commentaries remain critical at this juncture. Further, the number of downgrades/upgrades will have to be monitored for the quarter (due to the higher input cost pressure,) and that will drive the market fundamentals. Overall, the Indian market has entered into an upcycle of earnings with an expectation of 20 percent Nifty EPS CAGR growth over FY21-24, which was in a single digit of 7 percent over FY09-21. Chadawar said, "We believe the market will likely follow the double-digit earnings growth in upcoming years."
Bulls were back in action ahead of the F&O expiry, which helped Sensex close above the crucial 58000-mark, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. Investors cheered the reports that both Russia andUkraine are engaged in peace talks, which is providing some stability to markets globally. Another key aspect has been the fall in crude oil prices, which would help keep a lid on rising inflation levels. Currently, the market is trading near its important resistance level and has also formed a small Hammer candlestick formation. We are of the view that as long as the Nifty is trading above 17,400, the breakout structure is likely to persist till 17,600-17,645. On the flip side, below 17,400, the index could retest the level of 17,350-17,265, Chouhan said.
Mohit Nigam, Head-PMS, Hem Securities said, Strong buying is witnessed in realty, auto and banking stocks while selling pressure was witnessed in Metal stocks today. Positive progress in peace talks between Russia and Ukraine improved investor sentiments. Hariom Pipe opens today on which majority of the brokers have recommended subscribing to it. Citibank may announce sale of its Indian business to Axis Bank. CCI raids on tyre companies (CEAT, Apollo Tyres and Continental) and some pressure was seen in tyre stocks today. Tata Coffee shared surgedupto 10 percent after merger announcement.
Overall we believe that this positive momentum is likely to continue due to various supporting factors such as ease in crude and commodity prices (helps in reducing the margin pressure), peace talks between Russia and Ukraine (helps in boosting the investor sentiment), Nigam added.
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, the positive takeaway was that the market mood remained relatively upbeat and most importantly the desired follow-through buying was witnessed. That said volatility is likely to be the hallmark amidst March series F&O expiry. Nifty bulls will continue to monitor developments in the Russia-Ukraine war and consider tighter monetary policy from the Federal Reserve in the year ahead.
Global stocks mixed
European markets opened lower while Asian stocks advanced Wednesday as investors saw signs of possible progress in talks on ending Russia's war on Ukraine.
IIn Asia, the Shanghai Composite Index rose 2% to 3,266.60, rebounding from the previous day's loss after Shanghai, China's most populous city, closed most businesses to fight coronavirus outbreaks.
The Nikkei 225 in Tokyo fell 0.8 percent to 28,027.25 after the government reported February retail sales declined by a bigger-than-forecast 0.8 percent. That left retail spending down 2 percent from its November peak.
The Hang Seng in Hong Kong gained 1.4 percent. to 22,232.03 and the Kospi in Seoul added 0.2 percent. to 2,746.74. Sydney's S&P-ASX 200 advanced 0.7 percent. to 7,514.50.
Rupee skids 21 paise to 75.94 against dollar as crude oil spikes
T he rupee declined by 21 paise to 75.94 against the US dollar on Wednesday as surging crude oil prices and fuel rate hikes by the oil marketing companies fanned fears of inflation and interest rate hikes.
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd, said USDINR spot closed 7 paise lower at 75.91, as lackluster trading continued. Pair had opened gap down near 75.64, but demand for $ from oil marketing companies pushed the pair towards 75.91 by close of trading. Near term bias remains of a range, between 75.60 and 76.20 on spot.
(With inputs from Reuters)
