Indian markets extended the rally in the second (trimmed) week ended March 17, adding nearly four per cent as foreign institutional investors (FIIs) became net buyers after 10 weeks, easing tensions between Russian and Ukraine and crude oil prices. Gone. Gone. During the week, the BSE Sensex closed 2,313.63 points (4.16 per cent) higher at 57,863.93, while the Nifty 50 gained 656.6 points (3.94 per cent) to end at 17,287.05. All sectoral indices closed in the green with Nifty Auto and Bank indices rising 5-5 per cent and Realty index up 4.7 per cent. Broader indices – BSE mid-cap and small-cap – rose two per cent each, while large-cap indices gained four per cent.
Ajit Mishra, VP Research. Religare Broking said: “Markets extended the rally and gained around 4 per cent, largely tracking favorable global cues. Optimism around the de-escalation of the war between Russia and Ukraine combined with a sharp drop in crude aided sentiments. Moreover, no negative surprise from the US Fed also came as a relief to investors. As a result, both the benchmark indices, Sensex and Nifty, closed week highs at 57,863 and 17,287 levels. All sectoral indices participated in the move and broader indices also posted good gains.
In the absence of any major event, global signs viz. The focus will be on the Russia-Ukraine war, the situation of Kovid in China and the movement of crude oil. Apart from this, the FII flow of the participants will also be monitored.
foreign institutional investors
Santosh Meena, Head of Research, Swastika Investmart Ltd said: “FIIs who have been selling consistently for the last five months made a comeback last week with some buying and it will be interesting to see how the market performs when they continue their buying. In the last 5 months, he has sold over Rs 2.3 lakh crore in the Indian equity market which is his highest ever. Prior to this, their highest sales were during the global financial crisis in 2008, which was around Rs 1.3 lakh crore.
The interesting thing here is that Nifty and Sensex were down 60-65 per cent in 2008 from sales of Rs 1.3 lakh crore, but this time Nifty and Sensex have fallen only 15 per cent despite heavy selling by FIIs. was recorded. Registered. The domestic currency shows strong resilience this time around and we are no longer completely dependent on FII inflows. Our markets are in a much better position than most emerging markets and we have seen a strong rally from lower levels to give some leeway among FIIs and come back aggressively in the Indian markets which could be fueled. More rally in our market,” said Meena.
global signal
On a similar pattern to the US Fed, the Bank of England raised the bank rate by 25 basis points to 0.75 per cent. Given the current tightness in the labor market, continued signs of strong domestic cost and price pressures, and the risk of those pressures continuing, the Committee decided that a 0.25 per cent increase in the bank rate was required at this meeting. The committee expects inflation to rise to 8 percent in the second quarter of 2022, and perhaps even higher by the end of this year. According to the committee, the impact of Russia’s invasion of Ukraine will likely lead to both a peak in inflation and an adverse effect on activity by intensifying pressure on household income.
With the recent scenario in India opting for rate hikes by both the major central banks, the focus will now be on the RBI which will introduce the country’s first bi-monthly monetary policy in early April.
Commenting on Friday’s performance, S Ranganathan, Head of Research, LKP Securities, said, “Positive global cues following the Fed rate hike, softening oil prices and progress in Russia-Ukraine talks boosted bulls’ confidence.”
Nifty Technical Outlook
Technically, Nifty is giving proper follow-up to the Bullish Engulfing candlestick formation on the weekly chart while it managed to close above its 200-DMA and 50-DMA although the 100-DMA of 17380 is an immediate hurdle; Above this, we can expect further strength towards the 17,600/17,800 level. On the downside, 17,200 should act as an immediate support level, while the 200-DMA of 17000 will be a strong base for any pullback.
bank nifty
Banknifty also witnessed a strong pullback from lower levels however 36,700-37,300 is an important resistance area and if it manages to break out of this zone we can expect a short covering rally towards 38,000/38,500 levels . On the downside, 36,000 is the immediate support while 35,500/35,000 is the next support level.
What should investors do?
Mishra said: “The recent rally has certainly eased some of the pressure, though stability will largely depend on global cues. Tensions between Russia-Ukraine and any reports of worsening of the COVID-19 situation in China have fueled sentiment.” Amidst all this, we suggest maintaining a positive but cautious outlook with focus on overnight risk management. On the Index front, Nifty has the potential to test the 17,500-17,700 zone In case of any downside, 16,800-17,000 will act as a cushion. Metal, Energy and Pharma sector packs may outperform others, so plan your trades accordingly.
Disclaimer:Disclaimer: The views and investment tips of the experts in this News18.com report are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decision.
Read all todays fresh news , todays fresh news And Ukraine-Russia War Live Updates Here.