The stock markets closed higher at end of trading session on March 8. Sensex was the lone gainer among global markets. Amidst the volatility, the benchmark enjoyed an unusually strong short recovering session and the positive catalyst. Except for metal, all other sectoral indices ended in the green with pharma, IT, FMCG, capital goods and realty indices up 1-2 percent. BSE midcap and smallcap indices rose over 1 percent each.
The Nifty opened on a negative note and made an intraday low at 15,671.45 level but showed the bounce back in the second half and made an intraday high at 16,028.75 level and managed to above 16,000 levels. 37 out of Nifty 50 stock closed in green, indicating broad-based buying.
At close, the Sensex was up 581.34 points or 1.10 percent at 53,424.09. The broader Nifty was up 150.30 points or 0.95 percent at 16,013.50. About 2,193 shares have advanced, 1,069 shares declined, and 84 shares are unchanged.
Among sectors, pharma, IT, and realty indices ended up by 2-3 percent, while metal and oil and gas indices down 1 percent each.
Among top Nifty gainers were IOC, Sun Pharma, Tata Consumer Products, Cipla and TCS. Hindalco Industries, ONGC, Tata Steel, JSW Steel and Britannia Industries were among the biggest losers.
Nifty snapped a four day losing streak on March 8 after recovering from early declines. Nifty opened marginally lower and then began to rise making an intra day high at 1010 hours. It later fell to make an intra day low at 1240 hours. A sharp surge post 1330 hours following the recovery in European markets took the Nifty into positive territory. At close Nifty was up 0.95 percent or 150.3 points at 16013.5. Nifty was the only index in the Asian region to end up in the positive, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Palak Kothari, Research Associate, Choice Broking said, "On a daily chart, the Index has formed a Bullish Marabozu kind of candle which suggests bounce can be seen. On a monthly chart, the index has taken support from previous support zones and bounced from there which adds strength for upside. Furthermore, the index given closing above 21-HMA as well as stochastic is also bounced from the oversold zone with a positive crossover which adds strength for the next day. At present, the index has support at 15,650 levels breaching while resistance comes at 16,100 levels. On the other hand, Bank Nifty has support at 32,500 levels while resistance at 33,800 levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, Technically, Nifty has not only cleared the resistance of 15,900 but succeeded to close above the same which is broadly positive. In addition, after a sharp decline, Nifty has formed a promising long bullish candle that also supports a short-term uptrend. We are of the view that, as long as Nifty holds 15,900 and 1,5850 support zone, the reversal formation is likely to continue. Above which the chances of hitting 16,150-16,250 would turn bright. On the flip side, below 15,850 uptrends would be vulnerable.
Bulls await Russia-Ukraine ceasefire news
Going forwards, bulls will be at the mercy of any Russia-Ukraine ceasefire news, said Prashanth Tapse, Vice President (Research), Mehta Equities. The latest talks between Ukraine and Russia have ended without any breakthroughs reported. Amidst this geopolitical crisis, inflation is the biggest concern due to soaring oil prices. The Street will keenly watch on how RBI tackles with a backdrop of higher oil and commodity prices, and most importantly, growth-supporting fiscal policies. Technically, Nifty needs to sustain above 16,807 mark to unleash strong upside. Confirmation of more weakness now only below today’s low at 15,671 mark.
World markets mixed after rout on Wall Street
world markets were mixed on Tuesday, with European benchmarks and US futures turning higher after Asian shares extended losses. Surging prices for oil and other vital commodities have been rattling global markets and the situation remains uncertain as investors search for safe havens from expanding sanctions against Russia.
A report said the European Union was considering joint bond sales to help counter the fallout from Russia’s invasion of Ukraine as the bloc faces massive financing needs as it begins to reform its military and energy infrastructure following Russia’s invasion of Ukraine.
Asian markets tumble
Most emerging Asian markets tumbled on Tuesday on surging crude prices as the United States mulls a ban on oil imports from Russia following its invasion of Ukraine. Ultra-high commodity prices kept shares and currencies in several emerging Asian economies under pressure, stoking worries over inflation and slowing economic growth in countries only just emerging from a pandemic-driven slump.
Japan's benchmark Nikkei 225 shed 1.7 percent to finish at 24,790.95. Australia's S&P/ASX 200 sank 0.8 percent to 6,980.30. South Korea's Kospi slipped 1.1 percent to 2,622.40. Hong Kong's Hang Seng lost 1.4 percent to 20,765.87, while the Shanghai Composite tumbled 2.4 percent to 3,293.53.
Oil prices relatively steady
Oil prices were relatively steady after surging past $130 a barrel the day before. US benchmark crude gained $2.16 to $121.56 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, added $2.43 to $125.64 a barrel, Reuters said. Analysts expect the war in Ukraine to top the agenda for some time to come and say the full impact of the conflict is yet to be fully taken into account.
Rupee inches 3 paise higher to 76.90
The rupee inched higher by 3 paise to close at 76.90 (provisional) against the US dollar on Tuesday, tracking positive domestic equities and a weak dollar.
At the interbank forex market, the local unit opened at 77.02 against the greenback and witnessed an intra-day high of 76.71 and a low of 77.05, PTI said. The rupee finished at 76.90, registering a rise of 3 paise over its previous close.
Forex traders said the appreciation in the rupee was limited as the deepening Russia-Ukraine conflict has sapped risk appetite in the market, pushing investors towards safe-haven assets.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, declined 0.18 per cent to 99.11.
(With inputs from Reuters)
