On the sector front, most indices witnessed selling pressure, except auto and oil & gas which ended marginally in the green. Realty, banking, and capital goods were amongst the top losers.
It was not a terrible Tuesday but definitely, a volatile one as Nifty opened sharply lower after news of airstrike by Indian Air Force on Balakot-based terror camps, but managed to recoup losses towards the close of the trade.
The S&P BSE Sensex failed to hold on to 36,000 but bounced back more than 250 points after hitting a low of 35,714 in intraday trade on Tuesday. The Nifty50 also managed to reclaim 10,800 towards the close of the trade after hitting a low of 10,729.
The bounce back from the lows suggests that bulls have not given up, and even on technical charts Nifty formed a Bullish Candle as it closed higher than the opening level.
The broader markets BSE Midcap and Smallcap also ended with losses of 0.2 percent and 0.5 percent respectively.
On the sector front, most indices witnessed selling pressure, except auto and oil & gas which ended marginally in the green. Realty, banking, and capital goods were amongst the top losers.
“We started the day on a negative note but we managed to recover from lower levels but closed with losses of about 50 points. The market has been moving in a narrow range of 10,585 to 10,985, and the way it has taken support at lower levels and bounced back, it seems we are set to move higher,” Chandan Taparia, Associate Vice President, Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.
“So, yes the ‘Josh’ is high among investors and we are expecting Nifty to hold above 10,777. The move could further extend towards 10,929-10,985 levels,” he said.
Stocks in news
Dewan Housing Finance Corporation shares plunged 4 percent after rating agency ICRA downgraded commercial paper programme and continued to keep the company on watch with negative implications.
Max India shares climbed 2.6 percent after a media report indicated that Indian private equity firm True North Capital is likely to buy a controlling stake in Max Bupa Health Insurance.
Shares of Sharda Motor Industries surged 9 percent after company board agreed to the proposed demerger of the automobile seating business.
Shares of Intellect Design Arena rose 3.5 percent as company bagged large multi-million deal from Emirates NBD.
Shares of Britannia Industries rose 1 percent after it is going to replace HPCL in the Nifty50 index from March 29. Historically, such changes signal a long term contra trade for investors, buy the outgoing stock and book profits on the incoming stock in the Index which has been proved to be right 8 out of 10 times in last 10 years.
Global Updates
European indices are trading lower as investors are awaiting looked for clarity and detail from US-China trade talks.
Most of Asian markets ended in red on Tuesday. The Shanghai Composite ended 0.67 percent lower at 2,941.52, while the Shenzhen Component fell 0.5 percent to 9,089.04.
Hang Seng index declined 0.65 percent to 28772.06, and Nikkei was down 0.37 percent at 21,449.39.
