Closing Bell: Market bounces back with Nifty above 16,600, Sensex gaining over 1,300 pts amid Ukraine crisis

Taking Stock | Market snaps 7-day losing streak; Sensex gains 1,328 pts, Nifty above 16,600

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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 zone 16700-16750. Going forward, the recovery may continue as long as 16550 is held decisively.

Sharp recovery in the markets came on the back of a rally in global equity indices. The relief rally was expected as the markets world over, including in India, had been falling continuously for the past seven sessions and hence recovery was on the cards. If the war between Russia and Ukraine continues, the upmove could be short-lived and once again market sentiment could turn weak with bouts of volatility going ahead.

It would be interesting to see whether the index holds the level of 16500 or not. However, if the index manages to trade above 16500, a pullback formation is likely to continue till 16900-17000. However, a strong possibility of one more short term correction is not ruled out, if the index closes below 16500. Below the same, there are chances that the Nifty could hit 16300-16100 levels.

Today we witnessed good bounce back in market after yesterday`s mayhem, Nifty was up 2.5% at close with good momentum seen in small and mid-cap space. However volatility still persists in the market considering the weak global clues.

Investors are advised to maintain adequate liquidity to take advantage of any big fall in market and buy quality stocks on major falls.

For Nifty50 16580 will act as very strong support level. If this level is breached intraday than next support will be around 16430 levels, post which markets might take support at 16350 levels.

On upper side 16740 will act as strong hurdle rate, if this level is breached than next resistance will be around 16850 levels post which we might see 17000 levels.

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.

Benchmark indices snapped seven days losing streak and gained over 2 percent amid supportive global markets and buying across the sectors.

At close, the Sensex was up 1,328.61 points or 2.44% at 55,858.52, and the Nifty was up 410.40 points or 2.53% at 16,658.40. About 2567 shares have advanced, 724 shares declined, and 89 shares are unchanged.

Coal India, Tata Motors, Tata Steel, Adani Ports and IndusInd Bank were among gainers on the Nifty, while losers included Britannia Industries, Nestle India and HUL.

All the sectoral indices ended in the green with PSU Bank, power, metal and realty indices up 4-6 percent. BSE midcap and smallcap indices rose 4 percent each.

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