Indian benchmark indices rose three percent in the week ended April 1, led by crude oil cooling following positive developments in the Russia-Ukraine conflict and foreign institutional investors (FIIs) becoming net buyers. For the week, BSE Sensex added 1,914.49 points (3.33 percent) to end at 59,276.69, while the Nifty50 rose 517.45 points (3.01 percent) to end at 17,670.45 levels.
Volatility has decreased over the past week. India VIX fell significantly by more than 21 percent to 18.43 percent. Monday can be a stable start to the week. The 17,800 and 17,905 levels will act as likely resistance points, while the supports could hit the 17,500 and 17,320 levels. The trading range for the week remains wider than usual.
Ajit Mishra, VP Research, Religare Broking, said: “Markets posted strong gains and settled around the week’s high despite mixed global signals. A sharp drop in crude oil combined with an improvement in foreign flows boosted sentiment. However, ongoing tension over the Russia-Ukraine crisis and volatile global markets capped the momentum that was under control. Finally, the benchmark indices, Nifty and Sensex, each gained more than 3 percent to close at 17,670.45 and 59,276.69, respectively. The rally was largely driven by healthy buying across all sectors and all ended in green block metals. The broader indices also showed a similar trend, gaining nearly 3 percent each.”
In the coming days, the main focus of the market will be on the war between Russia and Ukraine, movements in crude oil prices and the RBI policy announcement expected next week. Market volatility is expected to continue until commodity prices fall and supply constraints are resolved.
Global clues
Vinod Nair, Head of Research at Geojit Financial Services, said: “The market remained highly volatile due to increased commodity prices and the resulting downward revision to future earnings growth. Product prices have continued to rise and are expected to further rise, impacting demand and margin Rising covid cases in parts of the world also raised concerns about global equities While peace talks between Russia and Ukraine gave hopes of de-escalating the war, reports intensified on Ukraine preparing for new attacks on Russia global sales Oil prices plummeted during the week due to rising covid cases in China and reports that the US is releasing significant oil reserves to offset fuel price increases easing crude oil prices is positive for the market, as it working helps to reduce their margin pressure.”
RBI policy complies with
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “This week, RBI credit policy will be a critical factor towards Indian markets as it appears that the RBI is lagging, as most central banks already have. increased interest rates while RBI maintains the status quo. It will be interesting to see how RBI will manage inflation and the growth tradeoff, with commentary being crucial.”
Operating results Q4
In terms of earnings, IT stocks appear to be strong. Figures released by Accenture last month beat expectations, boding well for the industry as a whole.
Handy Outlook
Technically speaking, the Nifty continues its strong bullish momentum after breaking out from the 17350 level, where 17800 is an immediate resistance while 18000-18100 is a critical resistance zone. On the other hand, the 17500-17450 zone will act as an immediate area of support while 17100 is a critical support in any sharp pullback.
Bank Nifty
Finally, Banknifty manages to knock out the 36700-37000 critical resistance zone and shows strong momentum with 38000 looking like an immediate target but 37400 being an intermediate hurdle. On the other hand, the 36700 level should now act as a support while 36000 is the next critical support level.
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