Closing Bell: Nifty ends near 17,100, Sensex falls 382 pts amid Russia-Ukraine crisis; realty worst hit

Markets are witnessing increased volatility as there is no immediate relief from Russia-Ukriane conflict that has rapidly worsened. Further, rising oil prices have added to the negativity in the markets. Also FNO monthly expiry on Thursday would keep the markets volatile.

Nifty has managed to close above the crucial levels of 17k for now. 16,800 has been a key support level for the market in the last one month. However, global weakness and consistent FII selling could add more pressure in the near term.

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The Nifty had a significant gap down opening on February 22, only to attract a fresh buying support at lower level. With the gap on the downside, the index tested the level of 16800 where it had taken support twice in the recent past.

Multiple support parameters are present near 16800, which are absorbing the selling pressure. In terms of the price pattern, the Nifty has formed a triangular pattern on the daily chart & has tested lower end of the pattern today.

Hereon the index is expected to bounce back yet again towards 17400-17500. The bullish potential holds intact as long as the Nifty stays above 16800 on a closing basis.

Escalation in Russia-Ukraine issue and a sharp surge in oil prices forced global markets to plunge sharply. Indian equities opened with heavy losses tracking overnight fall in the global market and its adverse spill over to commodity prices.

However, the domestic market managed to trim down its losses during the late session. Continued offload by FIIs has increased volatility while DIIs are adding position.

Markets continues its unprecedented move by correcting 2% in pre-open and later recovering the 2nd half. Investors are advised to remain cautious with their trades. We expect the recovery in the markets will be lead by Small and Midcaps post the Russia-Ukraine crisis ends.

For Nifty50, 17000 will act as very strong support, on breaking which we might see 16900 levels and if this level is also breached than next stop will be around 16850 levels.

On upper side 17160 will act as very strong resistance, if Nifty goes beyond these levels than next stop will be around 17225, which if broken will take markets to 17300 levels.

The Trend is your Friend and the street keeps reminding investors and traders just how tough it is to focus on the famous quote of Peter Lynch when you have a confluence of factors swaying you away from your investee companies. Just when the Global Economy is beginning to recover and normalise from the impact of the pandemic, Russia has recognised the independence of separatist regions in Ukraine thereby inviting the possibility of severe sanctions being imposed by the US & EU.

Today's Trade saw selling pressure across several Pharmaceutical & Auto Ancillary companies with exposure to the EU. Despite a recovery in afternoon trade, almost all sectoral indices ended in the red with India VIX soaring over 20% today amidst geopolitical tensions and rising oil prices.

Benchmark indices ended lower for the fifth consecutive session amid weak global cues due to Russia-Ukraine crisis.

At close, the Sensex was down 382.91 points or 0.66% at 57300.68, and the Nifty was down 114.50 points or 0.67% at 17092.20. About 684 shares have advanced, 2589 shares declined, and 82 shares are unchanged.

Tata Steel, TCS, BPCL, Tata Motors and SBI Life Insurance were the top Nifty losers. Gainers included M&M, Bajaj Finserv, Eicher Motors, Hindalco Industries and ONGC.

All the sectoral indices ended in the red with IT, metal, oil & gas, capital goods, FMCG, realty and PSU bank indices down 1-3 percent. BSE midcap and smallcap indices fell 0.7-1.6 percent.

Dhunseri Tea & Industries has informed exchanges that it sold Santi Tea Estate to Mis Sri Shyam Santi Tea. It entered into an agreement for sale with Mis Sri Shyam Santi Tea for sale of the said tea estate excluding its tea manufacturing factory.

The possession of the said tea estate has been handed over.

Dhunseri Tea & Industries was quoting at Rs 243.85, down Rs 8.00, or 3.18 percent on the BSE.

Delta Corp sold 5,41,797 equity shares in Advani Hotels & Resorts via open market transactions at an average price of Rs 99.4 per share on the NSE, as per the bulk deals data.

Advani Hotels and Resorts (India) was quoting at Rs 89.15, down Rs 4.95, or 5.26 percent on the BSE.

Global brokerage sees risks to the upside for Nifty, pegs the target at 17,500 for December 2022

Our 10 mean reversion scenarios put Nifty December 2022 target at an average of 17,500 with the range being 16,500 to 18,500: Jefferies... Read More

The United States and its European allies are set to announce fresh sanctions against Russia on Tuesday after President Vladimir Putin recognised two breakaway regions in eastern Ukraine, deepening Western fears of a new war in Europe.

The Ukrainian military said two soldiers were killed and 12 wounded in shelling by pro-Russian separatists in the east in the past 24 hours, the most casualties this year, as ceasefire violations increased.

Putin's announcement on Monday, and his signing of a decree on the deployment of Russian troops to the two breakaway regions, drew international condemnation and immediate U.S. sanctions, with President Joe Biden signing an executive order to halt U.S. business activity in the breakaway regions.

Oil hit its highest since 2014 on Tuesday as tensions between Russia and Ukraine escalated after Moscow ordered troops into two breakaway regions in eastern Ukraine, adding to supply concerns that are pushing prices to near $100 a barrel.

The United States and its European allies are poised to announce new sanctions against Russia after President Vladimir Putin formally recognised the two regions in eastern Ukraine, escalating a security crisis on the continent.