Closing Bell: Indices cool off from day's high as Sensex ends with 800-pts gain after BJP emerges clear winner in 4 states

Continuing with the positive momentum from the last couple of sessions, the Nifty opened with a significant gap on the upside. However, the index failed to build upon the early gains. The level of 16800 acted as a stiff barrier on the upside.

Structurally, the index is expected to witness a brief consolidation before taking out this barrier. Hence, buy on dips will be the preferred strategy from short term trading perspective.

A minor degree dip towards the key hourly moving averages i.e. 16400-16350 can be taken as a fresh buying opportunity.

The Nifty faced some resistance at the day's high and gave up some of its gains. For the market to turn positive, we need to spend some time at the current levels. This will allow the index to stabilize and change the sentiment as well.

Until then traders would be on the look out for signals to go short on the index. The immediate support for the Nifty is at 16100-16200.

The market's optimism has been fueled by the prospect of a favorable outcome from the Russia-Ukraine talks. Another encouraging development occurred when OPEC+ member the United Arab Emirate stated that it supports pouring more oil into the markets, which are experiencing a supply shortage due to US sanctions on Russian oil. If OPEC+ countries agree to raise output, crude oil gains could be limited in the ensuing session.

The BJP's strong showing in the state elections encouraged the bullish mood even further. Investors should stay cautious because the geopolitical stalemate remains unpredictable, but they can consider buying shares for long-term goals.

On the technical front, immediate support and resistance in the Nifty are 16,200 and 16,800. For the Bank Nifty, immediate support and resistance are at 33,500 and 35,500.

Technically, Nifty has covered the gap and bounce from the 89-HMA which suggest bounce back in the counter. On the Four-Hourly Chart, the index has formed a Hammer Candlestick pattern which points out northward direction in the counter.

Moreover, the index has given closing above 21 & 50 HMA which adds strength to the price. Momentum indicator is trading with a positive crossover which adds strength for the next day.

At present, the index has support at 16400 levels while resistance comes at 16900 levels. On the other hand, Bank Nifty has support at 33700 levels while resistance at 35000 levels.

The benchmark index Nifty maintained an upside gap during the day, suggesting the presence of strength throughout the day. However, on the higher end, it found resistance at the upper band of the declining channel.

Over the near term, the market may remain sideward as long as Nifty remains below 16750. A decisive move above 16750 may induce a rally towards 17000 and higher. On the lower end, support is visible at 16400.

Hopes of progress in high-level talks between Russia & Ukraine and a surge in the Asian market, the Indian market started with a strong gap-up.

The outperformance was supported by positive state election results being in line with expectations. However, a weak western market ahead of ECB & US CPI data and rise in crude prices added volatility in between.

Benchmark indices ended higher for the third consecutive session on March 10 helped by buying across the sectors.

At close, the Sensex was up 817.06 points or 1.50% at 55,464.39, and the Nifty was up 249.50 points or 1.53% at 16,594.90. About 2346 shares have advanced, 937 shares declined, and 94 shares are unchanged.

HUL, Tata Steel, Grasim Industries, JSW Steel and SBI were among the top Nifty gainers. On the other hand, Coal India, Tech Mahindra, Dr Reddy's Labs, ONGC and TCS were the biggest losers.

All the setoral indices ended in the green with auto, metal, FMCG, power, capital goods, PSU Bank and realty indices added 1-2 percent. BSE Smallcap and Midcap indices rose 1 percent each.

Natural gas prices corrected from recent high of $5.184 registered on Monday and now trading near $4.603 marginally up from yesterday’s low of $4.451

US temperatures are likely to decrease heating demand for natural gas. As per weather agency Atmospheric G2, above-normal temperatures are expected across most of the US from March 14-18, and spring-like warmth will continue across most of the central and eastern parts of the U.S. from March 19-23. It is negative for natural gas prices.

Natural gas prices are likely to get fresh direction from today’s weekly inventory report. The consensus is for inventories to fall by 121 bcf. Last EIA report showed that US natural gas inventories fell by 139 bcf to 1,643 bcf in the week ended Feb 25 against expectations of drop by 141 bcf. Natural gas Inventories in US remain tight and are down -10.9% y/y and -13.4% below their 5-year average.

CME Natural gas prices are likely to remain negative on change in weather forecast. It may find immediate resistance around $4.793-$5.26 meanwhile immediate support level could be seen around $4.55-$4.329.

The meeting of the Investment and Borrowing Committee of the Board of Directors of Ugro Capital is scheduled to be held on Monday, 14th March, 2022, to consider and approve raising of funds by way of issuance of Non-Convertible Debentures on private placement basis.

Ugro Capital was quoting at Rs 175.75, up Rs 1.80, or 1.03 percent on the BSE.

Diligent Industries board has recommended the split / sub-division of shares of the company from face value of Rs 5 each to face value of Re 1 each, subject to the approval of members of the company.

Diligent Industries touched a 52-week high of Rs 61.35 and Diligent Industries was quoting at Rs 61.30, up Rs 2.85, or 4.88 percent on the BSE.