BSE Sensex and Nifty 50 jumped 2.5 per cent on Friday amid broad-based buying, after falling nearly 5% in the previous session. Sensex rallied 1328.61 points or 2.4 per cent up 55,858.52, while Nifty 50 settled at 16658.40, up 410 points or 2.5 per cent, snapping a 7-day losing run. Sensex rallied 1328.61 points or 2.4 per cent up 55,858.52, while Nifty 50 settled at 16658.40, up 410 points or 2.5 per cent. Index heavyweights such as ICICI Bank, HDFC Bank, Tata Consultancy Services (TCS), Housing Development Finance Corporation (HDFC), Reliance Industries Ltd (RIL), and Bajaj Finance contributed the most to the indices’ gain. Broader markets outperformed equity benchmarks, after plunging nearly 6% in the Thursday’s session. S&P BSE MidCap index jumped 4.07 per cent or 906 points to end at 23,162.50, and S&P BSE SmallCap index rallied 4.17 per cent or 1,059.43 points to settle at 26,450.38. Bank Nifty jumped 3.4 per cent. India VIX, the volatility index, fell 16.4 per cent to settle at 26.74 levels.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Indian equity markets declined sharply in the past week. Both Nifty and Sensex lost around 3.5%. The Nifty small cap index underperformed during with the week with loss of 5.17%, while the midcap index outperformed with loss of 2.95%. BSE Oil and Gas index was the biggest loser with loss of 6.8%, followed by BSE Capital Goods with loss of 4.8%. Markets have been sharply volatile and the drop in Nifty from its high’s is certainly not indicative of the wealth erosion in many retail investor portfolios. Russia on Thursday launched an attack on Ukraine via land, air and sea, prompting fears of a devastating humanitarian crisis and sending shockwaves through financial markets. With earnings season behind us and given the overall sentiments, markets are expected to move in sync with global peers in the coming week. A close eye will be kept on the developments concerning the Russia – Ukraine crisis and considering the inflation overhang, market participants will also observe movements in energy prices.
Rupak De, Senior Technical Analyst, LKP Securities
The formation of bullish ABCD pattern helped a recovery in Nifty as the benchmark index ended at 410 points above the previous closing. However, the Friday’s recovery has found initial resistance at the resistance zone 16700-16750. Going forward, the recovery may continue as long as 16550 is held decisively.
Vinod Nair, Head of Research, Geojit Financial Services
Domestic indices staged a firm recovery tracking positive cues from global markets and took advantage of lower valuations following the massive sell-off in the previous session. Global markets took a breather as the fresh US sanctions did not target Russia’s oil exports nor their access to the Swift global payment network. However, the market will continue to remain volatile tracking new developments in the Russia-Ukraine war.
Mohit Nigam, Head -PMS, Hem Securities
On technical front today Nifty50 may take immediate support and resistance at 16,410 level and 16,850 level respectively. In case of Bank Nifty 35,550 and 36,950 level will act as immediate support and resistance.
Mitul Shah, Head of Research, Reliance Securities
The geopolitical pot is boiling. If that is no enough, the Fed’s aggressive tone on rate hike is keeping market participants on the edge. The LIC’s upcoming IPO is India’s biggest ever public listing and it continues to make waves. As the ball gets rolling with mega roadshows to connect with top-notch investors, the IDBI Bank stake sale comes up next on the Centre’s check list. As the economy looks to get on to the running track, the ongoing disinvestment process will for sure come as a shot in the arm for the government. The average downside in Indian market is 16-17% in past few wars, while recovery was 23% in 3 months and 34% in 6 months. Now in Russia-Ukraine War, NIFTY is down 12% from its peak of ~18,600. Even if we assume market recover by 23% by end of December 2022, we will get our year-end target of 20,000 on Nifty, which is based on 22x FY24 earnings.
