After witnessing a 3 per cent correction on Monday, domestic equity markets saw a strong pullback rally as benchmarks gained over 3 per cent in the closing on Tuesday. In a big boost, auto, IT, FMCG and banking stocks led the recovery amid geo-political tensions surrounding Russia-Ukraine crisis and inflation concerns.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

In a major pullback on Tuesday, Nifty50 ended near 17,400 after slipping below16,900 on Monday as 48 shares advanced and 2 declined on the 5-share index. Sensex too settled above 58, 100 as the 30-share index gained over 1700 points as all stocks on the index ended in the green.  

Nifty small cap and midcap indices ended 0.70% and 1% higher as all broader market indices settled in the green. Besides, strong buying interest was witnessed in auto, FMCG, IT, media and banking shares as the related indices gained up to 2.45% in Tuesday's closing.  

See Zee Business Live TV Streaming Below:

Tata Motors, Eicher Motors, Hero MotoCorp, Shree Cement, Bajaj Finance, State Bank of India, Bajaj Finserv, L&T, Wipro and Titan supported the market the most in this V-shape recovery. Cipla and ONGC were the only losers in a positive market.   

BSE-listed companies see fortune revival

Meanwhile, in a fortune-reversal, BSE-listed companies market capitalisation jumped 6.39 lakh crore to Rs 261.81 lakh crore on Tuesday as against Rs 2,55.42 lakh crore on Monday. 

We have collated views of market experts and analysts who speak on current trends, predicts how market would behave and suggest what should investors do going forward 

Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities 

The market is currently in a consolidation phase. However, yesterday’s reaction was more intense due to Geo-political tension and the rising crude prices, which were weighing on investors’ sentiments, resulting in a rise in volatility. We believe investors should utilize this increase in volatility to build positions in quality large-cap and mid-cap stocks as the earning expectations for Indian corporates remain strong. 

Santosh Meena, Head of Research, Swastika Investmart Ltd. 

It was not just a relief rally today, but a strong comeback by the bulls as they manage to defend 200-DMA. Nifty, Banknifty, Reliance, and many stocks respected their 200-DMA in today's trading session and witnessed a strong reversal. The reason for today's rally is easing tension between Russia and Ukraine while the market was oversold and frightened bears are the biggest bulls.  We are in a range since October and the good part is that there is no breakdown despite relentless selling by FIIs, whereas we have come down to the lower end of the range in recent fall, therefore, a strong pullback was expected. On the upside, 17450 is an immediate and important resistance level which is a cluster of 50 and 20-DMA while 100-DMA of 17630 will be the next hurdle. On the downside, 17100 should act as immediate and strong support now. 

Banknifty also respected its 200-DMA and managed to close above its 20-DMA of 38150. If it manages to trade above 38150, then we can expect a move towards the 39000-39500 zone. On the downside, 37500-37000 will act as a strong support zone. 

Vinod Nair, Head of Research at Geojit Financial Services.  

"A ray of hope that tension between Russian & Ukraine is de-escalating, prompting a smart recovery in global equities. The domestic market followed the trend as oil prices edged lower. India’s CPI inflation for January rose to 6.01% breaching RBI’s tolerance level due to high food inflation and low base effect, this will be a point of concern for domestic market in the near-term. 

S Ranganathan, Head of Research at LKP securities   

"As the street went into trade today after yesterday's biggest single day fall in the last ten months, investors were left thinking whether the template has indeed changed. A confluence of headwinds is now weighing on the minds of investors even as we had a massive pull back rally today led by Autos, Banks, IT & FMCG. The narrative for the day, however, was the fact that investors used the correction to their advantage. Thereby, triggering a short covering amidst encouraging export data for the month of January