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Taking Stock | Market ends higher on another volatile day, metals shine

Broader indices performed in line with the benchmarks, with BSE midcap and Smallcap indices adding 0.8 percent each

February 28, 2022 / 04:41 PM IST

The Indian equity benchmarks closed higher after a volatile session on February 28, on broad-based buying and positive cues from Asian markets.

After opening lower over the Russia-Ukraine war, the market remained under pressure for a couple of hours but buying in the second half saw it end near the day's high.

At close, the Sensex was up 388.76 points, or 0.70 percent, at 56,247.28, and the Nifty was up 135.50 points, or 0.81 percent, at 16,793.90.

"Aggravated Russia-Ukraine conflict along with fresh sanctions on Russia by global powers weighed on western markets. Despite opening on a negative tone, domestic indices staged a strong recovery lifted by metal stocks and positive Asian markets," said Vinod Nair, Head of Research at Geojit Financial Services.

"Metal stocks rallied on hopes that curtailing Russian exports would help Indian steelmakers to capture the export market share."

Close

Domestic investors were keenly awaiting the release of the Q3 GDP data later in the day, which was expected at 6.5 percent against 8.4 percent in the previous quarter, Nair added.

Hindalco Industries, Tata Steel, Power Grid Corporation, JSW Steel and BPCL were among the top Nifty gainers. Losers included HDFC Life, Dr Reddy's Labs, M&M, Axis Bank and HDFC Bank.

Except auto and bank, all sectoral indices ended in the green. The Nifty metal index rose nearly 5 percent and IT and energy indices 1-2 percent.

IndexPricesChangeChange%
Sensex54,245.49-43.12 -0.08%
Nifty 5016,181.10-33.60 -0.21%
Nifty Bank34,247.600.00 +0.00%
Nifty 50 16,181.10 -33.60 (-0.21%)
Tue, May 24, 2022
Biggest GainerPricesChangeChange%
M&M941.9038.10 +4.22%
Biggest LoserPricesChangeChange%
JSW Steel547.55-83.55 -13.24%
Best SectorPricesChangeChange%
Nifty Auto11115.20200.60 +1.84%
Worst SectorPricesChangeChange%
Nifty Metal5241.60-464.75 -8.14%

Broader indices performed in line with benchmarks. BSE midcap and smallcap indices added 0.8 percent each.

Stocks and sectors

On the BSE, the metal index jumped 5.4 percent, oil & gas index was up 2.4 percent and power index 1.5 percent. The IT index gained a percent, however, auto and the bankex fell 0.5 percent each.

A long build-up was seen in Gail India, Hindalco Industries and Jindal Steel and a short build-up was seen in Biocon, Rain Industries and Strides Pharma Science.

Among individual stocks, a volume spike of more than 100 percent was seen in Biocon, Godrej Consumer Products and Gail India.

As many as 100 stocks, including Hindalco Industries, Cyber Media and Shankara Building Products, touched a 52-week high.

The market will be shut on March 1 on account of Mahashivratri.

Outlook for March 2

Sachin Gupta, AVP, Research at Choice Broking

Technically, the Nifty formed a long green candle and sustained above the Lower Bollinger Band formation but is still trading below the 200-day simple moving average (SMA).

On the hourly chart, the index shifted above 21-SMA, which suggests further recovery.

Momentum indicator RSI pulled up from the oversold zone and Stochastic witnessed a positive crossover, indicating short-covering in the near term.

The Nifty has immediate support at around 16,650-16,500, while on upside, the resistance is at 17,000.

The Bank Nifty has support at 35,500 and resistance at 36,800.

Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas

The level of 16,800 was earlier acting as a crucial support and has now switched role to that of a resistance. Unless it is taken out on a closing basis, the index can see consolidation in the short term.

Once 16,800 is crossed on a closing basis, the Nifty can attempt a larger bounce towards 17,200.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty continues to recover as the 16,550 level was not broken decisively. On the higher end, the index value crossed beyond the initial resistance 16,750.

The momentum may continue till 16,930-17,000, where the Nifty may again face selling pressure. On the lower end, support lies at 16,750 and 16,600.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 



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Rakesh Patil
first published: Feb 28, 2022 04:41 pm
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