Closing Bell: Market stages bounce back; Nifty above 17,300, Sensex gains nearly 700 points

Domestic equity market witnessed a sharp recovery on Tuesday after muted opening and trading in the red most parts of the session amid spike in crude prices. 

Commodities are front and centre of the unfolding shock unleashed by the war in Ukraine and we still believe we are witnessing a price crisis and not a supply crisis, says Norbert Rücker, Head Economics and Next Generation Research, Julius Baer, on spike in crude prices.

"We still believe that commodities are about to follow the price pattern usually observed during such geopolitical shocks, with an up move followed by a down move within weeks and months, not years. We maintain our Neutral views, given the fluidity and uncertainty around the crisis’ dynamics."

Benchmarks Nifty50 and the Sensex ended with gains of over 1 per cent as IT and oil & gas stocks powered the headline indices to stage a bounce back in the late afternoon session. 

The broader Nifty 50 managed to close above 17,300, while the Sensex rose nearly 700 points to settle around 58,000.  

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In the broader market, Nifty midcap and smallcap indices too ended in the green with the gains of nearly 0.25%. After declining by around 500 points, the 12-share banking index Nifty Bank too added more than 350 points to end above 36,300.  

IT, Private Bank and Oil & Gas sectors attracted maximum buying interest as FMCG, Realty, Pharma and Consumer Durables ended lower in a volatile market.  

Tech Mahindra, Tata Motors, BPCL, RIL, TCS, Bajaj Finserv, Kotak Bank, ITC, Infosys, Powergrid and Bajaj Finance were among top gainers on Tuesday.  

Hindustan Unilever, Nestle India, Britannia, Cipla, Divis Laboratories, Sun Pharma and NTPC were among a few laggards.

"The domestic market started with a negative bias taking cues from rising crude prices and hawkish signals from Fed on aggressive policy tightening. However, the trend reversed as European markets opened on a positive note buoyed by hope that Ukraine may consider working towards a truce," said Vinod Nair, Head of Research at Geojit Financial Services.

On the technical front, the nifty index has formed a bullish candle after taking a support at 50% Retracement Levels and moved above 50 days Exponential Moving Averages that suggests a bullish strength for the coming day, says Sachin GuptaAVP, Research Choice Broking. 

"All important key indicators like RSI, Stochastic & MACD witnessed positive crossover that supports the bullish bias. At present, the index has support at 17000 levels, while resistance comes at 17470 levels. On the other hand, Bank nifty has support at 35,700 levels while resistance at 37000 levels," he added.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)