Domestic equities witnessed wave of volatility on Wednesday amid uncertainty arising due to global factors. Benchmark indices ended the choppy session in red, dragged by auto, bank, metal and IT stocks. Sensex closed 145.37 points or 0.25% lower at 57,996.68, and the Nifty settled 30.30 points or 0.17% down at 17,322.20. Sectorally, Healthcare, oil & gas and realty indices ended in the green. In broader markets, the midcap index ended flat while smallcap index rose 0.42%. Power Grid Corporation, UltraTech Cement, NTPC, ICICI Bank and SBI were the top Nifty losers, Divis Labs, Adani Ports, ONGC, IOC and HDFC Life were the top gainers in the pack.
“Indian Markets kept dancing to the tunes of global news flows from Ukraine. After initial fall, markets witnessed a sharp pull back in the noon as media reported de-escalation of tensions between Russia and Ukraine. However the market turned negative once again after warning from NATO saying that Russia is continuing military build-up around Ukraine. This increase in volatility is likely to remain in the near term as market continues to focus on the geo-political developments around Russia and Ukraine. Other major factors like inflation and interest rate too continue dominate the Global narrative,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Palak Kothari, Research Associate, Choice Broking
“On a daily chart, Nifty has taken resistance from a middle band of Bollinger as well as 50 DMA which suggests crossing above the same can show upside. On an Hourly Chart, the index has formed a bearish candle which suggests some correction can be seen in upcoming days. Moreover, the daily momentum indicator MACD is also trading with a negative crossover which adds weakness in prices. At present, the Index has support at 17130 levels while resistance comes at 17500 levels, crossing above the same show further upside rally. On the other hand, Bank nifty has support at 37600 levels while resistance at 38500 levels.”
Mohit Nigam, Head – PMS, HEM Securities
“Market regains yesterday’s losses as Russia-Ukraine tensions ease. Rupee posts biggest single session rise against dollar since Jan 31. Nifty 50 formed a bullish candle on daily chart with index managed to close a day below good resistance zone of 17,300 and if index holds above 17300 mark then we may see more surge towards 17,600-17,800 mark which are another resistance zone on the upside. Volatility gauge Index tanks by 0.10% to 20.59. Also the broader market confirms an upward move and in turn market breadth was skewed in the favour of bulls. Crucial support for Nifty 50 is 17,000 while Nifty may face some resistance at 17,500.”
Deepak Jasani, Head of Retail Research, HDFC Securities
“Nifty ran into selling pressure at higher levels on a day when most other Asian indices were doing well. Advance decline ratio remained in the positive suggesting return of trader interest in the broad markets. High crude oil prices, outcome of state elections and fears of rate hikes in India are raising concerns among FPIs who are choosing to take advantage of rallies to lighten their position. 17491-17554 could continue to be a resistance for the Nifty while 17214 could be the support.”
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