Moneycontrol PRO

Taking Stock | Market stages smart rebound, Nifty ends above 16,900 ahead of US Fed decision

On the BSE, as many as 100 stocks touched their 52-week high. These included Usha Martin, Shankara Building Products, NDTV, JK Paper, Cholamandalam Investment and Finance Company.

March 16, 2022 / 04:33 PM IST

Indian equity markets staged a smart rebound on March 16 and regained previous session's losses as the benchmark indices jumped nearly 2 percent amid across-the-board buying.

Market started gap-up and stayed in the positive territory throughout the session, finishing near the day's high ahead of US Federal Reserve meeting outcome tonight.

At close, the Sensex was up 1,039.80 points or 1.86% at 56,816.65, while the Nifty was up 312.30 points or 1.87% at 16,975.30.

"The Indian market rebounded from the losses after taking positive cues from Wall Street. Sentiments were further supported by the cool-off in the oil prices, and the progress on the peace talk between Russia and Ukraine conflict," said Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities.

"Now the market is waiting for the outcome of the FED meeting as the current geopolitical developments are adding further inflationary pressure in the global market, and it is important to see the view of central banks."

Close

"The wider view is that central banks first focus more on controlling the inflationary effects rather than growth effects. Volatility will continue to be on a higher side before we conclude concrete market direction."

"It is likely to go down to settle below the long-term average as soon as we enter into a rate hike cycle, and the trajectory for the actual number of rate hikes projected for 2022 will be known to the market. The second half of 2022 is likely to be more stable compared to the first half," he added.

UltraTech Cement, Axis Bank, Shree Cements, IndusInd Bank and Bajaj Auto were among the top Nifty gainers, while losers were Cipla, Sun Pharma, Tata Consumer Products and Power Grid Corporation.

IndexPricesChangeChange%
Sensex52,727.98462.26 +0.88%
Nifty 5015,699.25142.60 +0.92%
Nifty Bank33,627.45492.45 +1.49%
Nifty 50 15,699.25 142.60 (0.92%)
Fri, Jun 24, 2022
Biggest GainerPricesChangeChange%
M&M1,072.0544.35 +4.32%
Biggest LoserPricesChangeChange%
Tech Mahindra981.20-9.90 -1.00%
Best SectorPricesChangeChange%
Nifty PSU Bank2460.4047.80 +1.98%
Worst SectorPricesChangeChange%
Nifty IT27777.80-250.00 -0.89%

All the sectoral indices ended in the green with Nifty Bank, Auto, Metal indices rising 2 percent each. FMCG and IT indices, too, gained nearly 2 percent each.

Also Read - Nifty, Sensex rebound into green. Four factors driving the market sentiment

Stocks and sectors

On the sectoral front, IT, oil & gas, metal and realty indices rose 2-3 percent, while auto, bank, capital goods, FMCG, and power indices rose 1 percent each.

Broader indices performed inline with main indices with BSE Midcap index adding 1.8 percent and BSE Smallcap index surging 1.4 percent.

A long build-up was seen in JK Cement, Hindustan Aeronautics and Intellect Design Arena, while a short build-up was seen in the Coforge, Federal Bank and Balrampur Chini Mills.

Among individual stocks, a volume spike of more than 200 percent was seen in Hindustan Aeronautics, Tata Communications and Nippon Life India Asset Management.

On the BSE, as many as 100 stocks touched their 52-week high. These included Usha Martin, Shankara Building Products, NDTV, JK Paper, Cholamandalam Investment and Finance Company.

Outlook for March 17

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities:

Nifty has staged a strong recovery with a combination of value and momentum. We expect the uptrend to sustain for the medium term.

The March series expect limited downside with resistance placed at 17,200-17,300 levels; on the downside, support is seen at 16,500-16,600 levels.

Buying on dips is advisable with focus on cement, NBFC and consumption space. Metals are expected to consolidate with high volatility.

Rahul Sharma - Equity 99:

After yesterday's fall, markets today made a good comeback with Sensex gaining almost 1.86% due to falling crude oil price. Tomorrow, we will witness a volatile session due to weakly expiry and also Fed's meeting today where likely rate hike is expected after COVID-19.

Also, brutal FII selling is a factor to consider before taking any positions. Tomorrow, considering the volatility, traders are advised to trade only after keeping strict stop losses.

For Nifty50, 16,900 will act as strong support post which next support is at 16,800 levels. Thereafter, 16,750 is also possible. On the upper side, 17,050 will act as strong resistance, post which 17,110 will be the next hurdle rate. Once this level is broken, the next resistance will be around 17,200 levels.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

Market seems to have come off from the turbulent phase of the last few weeks. While the conflict between Russia and Ukraine continues, other events such as cooling oil prices and US Federal Reserve's decision on the rate front and commentary about the pace of future rate hikes are being eyed by the investors.

The trend reversal in recent sessions is also due to the market being in an oversold territory in the past few weeks. Technically, on intraday charts, the Nifty maintains a higher high and higher low formation and is now heading towards 17,000 and 17,200 levels.

We are of the view that the current texture is likely to continue unless the index slips below 16,750-16,700 levels. Above this level, the Nifty could rise up to 17,100-17,200 levels.

On the flip side, traders may prefer to take a caution stance if the index slips below 16,750 and below the same, chances of hitting 16,700-16,600 would be brighter.

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.
Rakesh Patil
first published: Mar 16, 2022 04:31 pm
Sections
ISO 27001 - BSI Assurance Mark