The benchmark indices rallied further since the opening bell through to intra-day deals to the closing bell. IT and bank indices rose 2 percent each, while realty index was down nearly 2 percent. The BSE midcap index ended flat, while smallcap index gained 0.3 percent.
At close, the Sensex was up 935.72 points or 1.68 percent at 56,486.02. The broader Nifty was up 240.80 points or 1.45 percent at 16,871.30. About 1,684 shares have advanced, 1,706 shares declined, and 134 shares are unchanged.
Selling was seen in the power, oil & gas, realty, pharma and metal names. Stocks like Infosys, SBIN , HDFC Bank and Maruti were the top gainers while IOC, ONGC, HUL and Tata Motors were the prime laggards.
Santosh Meena, Head of Research, Swastika Investmart Ltd., said, "The news flows related to the Russia-Ukraine issue will continue to cause volatility while we will react to our inflation numbers tomorrow. Technically, Nifty manages to close above the important resistance zone of 16,750-16,800 where 200-DMA of 16,975 is an immediate and critical hurdle; above this, we can expect a short-covering rally towards 17,300 level otherwise we can again expect some selling pressure. On the downside, 20-DMA of 16740 will act as immediate support while 16,500-16,400 is the next support zone."
Bank Nifty outperformed in the leadership of HDFC Bank, however, 35,750-36,000 is an immediate and critical resistance zone, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. "Above this level, we can expect a short-covering rally towards 36,500/37,000 levels. On the downside, 35,000 is immediate support while 34,300-34,000 is the next support zone", he added.
Equity markets outperform global peers
Indian equity markets outperformed most of the global peers in today's trading session. The rally can be attributed to some positive news flows on the Russia-Ukraine issue, cool off in crude oil prices, the expectation of only a 25 basis points rate hike by the US Fed, lack of selling by FIIs, and buying by DIIs.
Deepak Jasani, Head-Retail Research, HDFC Securities, said, "Nifty closed with gains for the fifth consecutive day on March 14, marking the longest winning streak in nearly five months. It opened flat and started to rise post-10.20 AM. At close, Nifty was up 1.45 percent or 240.8 points at 16,871.3. In the process, Nifty was the best performer in the Asian region. On a day when the volumes on the NSE were higher than the previous day but lower than the recent average, IT, Banks and Auto indices rose the most, while Realty and Oil and Gas indices fell the most. BSE Smallcap index rose 0.31 percent while Midcap index closed almost flat.
Nifty rose smartly on Monday even with a negative advance decline ratio. This suggest that the selling pressure from FPIs is waning and the largecaps have started to outperform. This upward momentum can continue for a few sessions. 16,757-17,027 could be the band for the Nifty in the near-term, added Jasani.
Indices showed directional bias throughout the day as investor sentiments got a boost after the statements of Chief Economic Advisor V Anantha Nageswaran that India will be able to counter the effects of Russia – Ukraine conflict in the near-term on the back of sound budget assumption of FY23. Mohit Nigam, Head - PMS, Hem Securities, said, investors also sensed some relieve due to fall in crude oil from the highs of $140. The negative news of rise in WPI didn’t affect the market sentiments as it continued its movement towards upward trajectory.
On the technical front, the key resistance levels for Nifty50 are 17,200 and on the downside 16,600 can act as strong support. Key resistance and support levels for Bank Nifty are 36,000 and 34,800 respectively, said Nigam.
Palak Kothari, Head-Research Associate, Choice Broking, said, "Technically, Index has formed a bullish candle on the daily chart as well as given closing above 21 -DMA which suggest strength in the counter. Furthermore, the Index has given a breakout of the falling trendline 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 MACD is trading with a positive crossover which adds strength for the next day. At present, the index has support at 16500 levels while resistance comes at 17,000 levels, crossing above the same can show 17,200-17,300 levels. On the other hand, Bank Nifty has support at 34,600 levels while resistance at 35,800 levels."
Divergences in Asian equity markets
There were some serious divergences in Asian equity markets on Monday as China concerns buffet some markets, while others rise on lower oil and Ukraine negotiation hopes.
European stock markets traded higher Monday on raised hopes for a diplomatic solution to the Ukraine war, but investors remain wary as fighting continues, a number of central banks hold meetings this week and COVID returns to China.
China’s decision to place the over 17 million residents of Shenzhen, the country’s technology hub, into lockdown for at least a week after COVID cases soared once more. This has the potential to weigh heavily on economic growth in China, as well as further disrupt global supply chains.
India's inflation based on the Wholesale Price Index (WPI) rose to 13.11 percent year on year in February from 12.96 percent in January. WPI inflation was 4.83 percent in February 2021. This is the 11th consecutive month in which WPI has been in double digits.
Trade deficit widens
India's trade deficit widened as imports rose. The gap rose to $20.88 billion in February from $17.42 billion in the preceding month, according to data by the Ministry of Commerce and Industry on Monday. Exports rose 25.1 percent year-on-year and 0.2 percent over the previous month to $34.57 billion. Imports rose 36.1 percent year-on-year and 6.8 percent over the preceding month to $55.45 billion.