what happened with the market

Benchmark of Equity index gained nearly 100 points on a highly volatile trade while buying attributed in sectors such as pharma, Oil & Gas, and FMCG stocks, as domestic sentiment turned positive after the BJP got a majority in the four assembly state election. However, the Russia-Ukraine crisis, increased oil price, and rising USDINR kept the market highly volatile today. Sensex and Nifty rose for four consecutive sessions, the longest winning streak in nearly two months.

Sensex gained 86 points to close at 55550 while touching an intra-day high of 55834. Nifty advance 35 points to close at 16630 while touching an intra-day high of 16694. Cipla was the top gainer among the Nifty pack followed by Sun Pharma, BPCL, Jindal Steel, IOC, and ITC. However, Nestle, Maruti, Tata Consumers, and Hindalco were among the major loser Nifty stocks

Sentiment got a boost after the ruling Bharatiya Janata Party retained the politically important state of Uttar Pradesh in the recently concluded elections. The win should give the government enough strength to pursue reforms such as a privatization program. The market could not move upside on account of geopolitical tension and rising US Inflation. The Ukraine and Russia talks failed to make progress in halting the war and the U.S. inflation accelerated to a fresh 40-year high in February to 7.9% ahead of US Fed meeting next week which is a major concern in the market.

Asian markets slipped 1-2% while European gained over half percent with data showing US inflation at a 40- year high adding pressure on the Federal Reserve to ramp up interest rates.

Among the major Index, the Nifty pharma Index witnessed major gainer today and surged nearly 3%. Nifty, mid-cap, oil & gas, FMCG, metal, and small-cap index gained half to one percent. However, Nifty IT index declined marginally. Nifty 500 stocks advance-decline ratio was1.5:1. India Vix slipped 1% to close at 25.34.

Pharma stocks witnessed fresh buying on account of the benefit of rising USDINR. Sun Pharma gained 4% to close at Rs902 after the news that the Canadian firm Cipher Pharma entered into an amended distribution and supply pact with Sun Pharma. Cipla surged 6% to close at Rs1044 amid a hefty volume of 1.1cr share traded on NSE. Granules, Laurus Lab, Dr Reddy, Alkem Labs, Torrent Pharma, and Aurobindo Pharma advance 2-4%.

Oil marketing stocks witnessed fresh buying in the hope of the government may hike fuel prices after post assembly election results outcome and ahead of BPCL disinvestment. BPCL gained 4% to close at Rs362. HPCL surged 5% to close at Rs294 and IOC soared nearly 3% to close at Rs124.

Banking stocks witnessed a mixed bag. AU Bank gained 3% to close at Rs1193. PSU Bank like SBI, PNB, and Bank of Baroda recovered from the intra-day low after the news report that the Government is working out a mechanism to facilitate trade with Russia using local currencies, with a decision expected as early as next week. However, Axis Bank slipped 1% to close at Rs691.

Select FMCG stocks witnessed fresh buying. ITC gained 2% to close at Rs236. United Spirits, Marico, and United Breweries gained 1% each. Tech stocks witnessed profit booking. Infosys, LTI, TCS, and Wipro declined marginally due to profit booking.

Technical Outlook:

Nifty index opened negative and remained in a range throughout the day. It witnessed buying was visible at declines but follow-up was missing which suggests limited upside before it started the next leg of the rally. It formed a Bullish candle on a daily and weekly scale which indicates that bulls are back on track after the weakness of the last four weeks. Now it has to hold above 16500 zones, for an up move towards 16800 and 17000 zones whereas support exists at 16450 and 16350 zones.

The views and investment tips expressed by experts on kunjcapital.com are their own and not those of the website or its management. Kunjcapital.com advises users to check with certified experts before making any investment decisions. *Services related to Advisory on Kunjcapital.com are not running by kunjcapital.com and they are proposed services, Sebi Registration Awaited.