The Indian benchmark indices snapped a four-day losing streak to end higher in the volatile session on March 8, powered by gains in pharma and information technology names.
The market opened lower on weak global cues and remained volatile but buying in the final hour helped the indices close near the day's high.
The Sensex was up 581.34 points or 1.10 percent at 53,424.09, and the Nifty was up 150.30 points or 0.95 percent at 16,013.50.
"Domestic indices reversed their trend and traded with gains led by export-oriented sectors like pharma and IT, which witnessed buying interest as the rupee fell to its record lows," said Vinod Nair, Head of Research at Geojit Financial Services.
Exit polls favouring the ruling BJP in state elections and low-level buying in mid and small caps also added to optimism in the domestic market, he said.
"Major western markets were also trading in the green, while other Asian peers continued to trade in negative territory on fear of the impact of global inflationary pressure due to the ban on Russia’s oil export," he added.
IOC, Sun Pharma, Tata Consumer Products, Cipla and TCS were among the top Nifty gainers. On the other hand, Hindalco Industries, ONGC, Tata Steel, JSW Steel and Britannia Industries were the biggest losers.
Among sectors, except metal, down 1.5 percent, all other sectoral indices ended in the green. Nifty pharma, PSU Bank and IT rose 2 percent each and FMCG index added a percent.
Broader indices outperformed the benchmarks, with BSE midcap and smallcap indices rising more a percent each.
Stocks and sectors
On the sectoral front, BSE capital goods, FMCG, healthcare, IT and realty indices were up 1-3 percent. However, oil & gas and metal indices fell 1-2 percent.
A long build-up was seen in Indraprastha Gas, SBI Cards and Mahanagar Gas, while a short build-up was seen in the JK Cement, Nalco and ONGC.
Among individual stocks, a volume spike of more than 200 percent was seen in Chambal Fertilisers, APL Apollo Tubes and GSPL.
On the BSE, Dhampur Sugar Mills, Dwarikesh Sugar Industries Genesys International Corporation, and Power Grid Corporation of India touched their 52-week high. Britannia Industries, HDFC Bank, Indiabulls Housing Finance, Mahindra & Mahindra and Ultratech Cement sank to their 52-week low.
Outlook for March 9
Rupak De, Senior Technical Analyst, LKP Securities
Markets witnessed a spectacular recovery as the Nifty closed more than 300 off the day’s low. On the daily chart, a bullish engulfing pattern has formed, which suggests short-term positive reversal.
On the higher end, the index may move towards 16,200-16,400 over the short term. On the lower end, 15,800 is likely to act as support.
Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas
Continuing with the recent bearish momentum, the Nifty opened gap down and attempted to extend further down. It breached the level of 15,700 on an intraday basis but received strong support in the lower territory.
Consequently, the index witnessed a sharp recovery towards the end of the session that resulted in a bullish outside bar formation on the daily chart.
The hourly momentum indicator has been showing positive divergence, which is assisting the bulls in the recovery.
The overall structure, shows that the Nifty has taken support near 61.8 percent retracement of the previous April–October rally as well as near lower end of a falling channel drawn for the January–March decline.
Thus, 15,800-15,700 is a crucial support zone for the Nifty. The index is expected to test 16,200 on the upside, beyond which the short-term range will shift higher again.
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
Short-covering pulled up key benchmark indices. Select buying interest was seen in reality, media and PSU banks while some-profit booking was seen in metal stocks.
Technically, the Nifty has not only cleared the resistance of 15,900 but succeeded to close above it, which is broadly positive.
After a sharp decline, the Nifty has formed a promising long bullish candle that also supports a short-term uptrend.
As long as the Nifty holds the 15,900- 15,850 support zone, the reversal formation is likely to continue. Above which, the chances of hitting 16,150-16,250 will be bright. The uptrend, however, will be vulnerable below 15,850.
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