the benchmark stock market indices turned positive at the opening bell on February 23. At 09:16 AM, the Sensex was up 307.15 points or 0.54 percent at 57607.83. The broader Nifty was up 95.30 points or 0.56 percent at 17,187.50. About 1,388 shares have advanced, 554 shares declined, and 60 shares are unchanged.
Among Nifty gainers were UPL (+0.97 percent), HDFC Bank (+0.95 percent), SBI (+0.92 percent), ITC (+0.91 percent), and Infosys (+0.90 percent) while while losers were ONGC and L&T.
Nifty ended lower for the fifth consecutive session on February 22, driven lower by developments on the Russia Ukraine front. At close Nifty was down 0.67 percent or 114.4 points at 17,092.
Nifty continues dropping everyday and then recovering part of the losses by the end of the day. Advance decline ratio continues to be heavily in the negative. 16,809-16,836 band continues to provide support on falls while 17,267 could offer resistance. It will be interesting to watch as to whether Nifty is able to protect its opening gains through the day.
Asian stocks up
Shares in Asia-Pacific rose in Wednesday morning trade as investors continue monitoring the intensifying crisis surrounding Ukraine. S&P 500 futures were up 0.4 percent in early Asia trade, after US President Joe Biden left the door open to diplomacy as he announced sanctions on two Russian banks and some elites close to President Vladimir Putin, Reuters said
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) eased 0.1 percent. Japan's Nikkei (.N225) was closed for the Emperor's birthday holiday.
US stock close sharply lower
US stocks closed sharply lower Tuesday, with the S&P 500 entering correction territory, as investors reacted to Russian President Vladimir Putin’s decision to order troops to breakaway regions of Ukraine, escalating tensions and raising fears of a full-scale invasion.
The Dow Jones Industrial Average closed down 482.57 points, or 1.42 percent at 33,596.61, while the S&P 500 lost 44.11 points, or 1.01 percent falling to 4,304.76 and the Nasdaq Composite dropped 166.55 points, or 1.23 percent to 13,381.52. The MSCI world equity index, which tracks shares in 50 countries, shed 0.9 percent after earlier falling 1.5 percent, with the index at levels not seen since January 28.
Markets in the US were closed Monday in observance of the Presidents Day holiday, with trade on Tuesday providing the first opportunity for investors to react to developments in Eastern Europe.
President Joe Biden on Tuesday said the US would sanction two Russian banks as well as the country’s sovereign debt, as he blamed Moscow for what he called the beginning of an invasion of Ukraine.
A “flash” index of activity by US service-oriented companies jumped to 57.5 this month from an 18-month low of 51.1 in January, IHS Markit said. A similar gauge of US manufacturers rose to 52.5 in February from 50.5.
Crude soars
Brent crude futures settled up 1.5 percent at $96.84 per barrel after earlier topping $99 for the highest level since September 2014, reflecting fears that Russia's energy exports could be disrupted by any conflict. US West Texas Intermediate (WTI) crude settled up 1.4 percent at $92.35 per barrel after earlier hitting $96, its highest level since August 2014.
Crude oil showed very high volatility on Tuesday as WTI prices crossed $94 a barrel and Brent prices also crossed $99 a barrel mark, first time since 2014, said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. The United States and Britain announced sanctions targeting Russian banks, while the European Union blacklisted more politicians and Germany put the brakes on the $11 billion Nord Stream 2 gas pipeline project. Tight global supply conditions and escalating geo-political tensions could support oil prices in the international markets. We expect crude oil prices to remain positive in today’s session and WTI prices continue to hold its support level of $88 a barrel while Brent prices could hold $90 a barrel on a weekly closing basis. Crude oil is having support at $90.40–88.00 and resistance is at $93.40–94.50 in today’s session. In INR terms Crude oil has support at Rs6,669-6,421; while resistance is at Rs7,145–7,373.
Gold, silver gain
Gold and silver gained on Tuesday due to safe-haven buying after escalating Russia-Ukraine tensions. Traders in the US markets returned after long week-end and preferred safe-haven assets in war situation. We expect both precious metals to remain volatile in today’s session but continue to hold its support levels, said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Gold has support at $1896-1884, while resistance at $1922-1934 per troy ounce. Silver has support at $24.00- 23.66, while resistance is at $24.60-24.88 per troy ounce. In INR gold has support at Rs50,028–49,727, while resistance is at Rs50,658–50,987. Silver has support at Rs63,895- 63,446 while resistance is at Rs64,769–65,194, Kalantri said.
Currency Outlook
USDINR on the technical chart a pair is trading below its trend line support level of 75.0600, said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. MACD is also showing negative divergence on the daily technical chart and RSI is fetching below 50 levels. "As per the daily technical chart, we observed that a pair slipped below its support level of 75.0500 but it is in oversold territory. Looking at the technical set-up, we expect a pair could hold its support level of 74.3500. A pair will show strength only when it starts sustaining above 75.0600 levels. We expect a pair could trade in the range of 74.3500-75.0600 in today’s session; either side breakout of the range would give further directions," Kalantri added.
Barclays pegs India's Q3 GDP growth at 6.6%
Foreign brokerage Barclay is forecasting a lower-than-previously projected 10 percent GDP growth for the fiscal year 2022 due to the third wave of the pandemic. It said the Indian economy is likely to have expanded by 6.6 percent in the December quarter.
The economy had a relatively stable Q3 with several sectors returning to pre-pandemic level of activity, with services playing a bigger role in activity, the report said, adding that with the mild Omicron wave in January, there is clear downside risks to the earlier growth forecast of 10 per cent in FY22.
Govt to go ahead with LIC IPO
Finance Minister Nirmala Sitharaman Tuesday said there is a lot of interest and buzz in the market for the upcoming initial public offering of Life Insurance Corporation of India (LIC).
She also indicated that the Initial Public Offering (IPO) will happen in the current financial year.
Stocks under F&O ban
Three stocks - Escorts, Indiabulls Housing Finance, and Punjab National Bank - are under the F&O ban for February 23
