Nifty regains 17,200, Sensex adds nearly 200 points; pharma, metal, PSU bank lead the recovery

The Indian markets witnessed huge volatility throughout the day as the benchmarks from correcting nearly 1 per cent in the early afternoon trade ended in the green, making a sharp recovery in Tuesday's closing. It also snapped three-day continuous fall as headline indices Nifty50 and the S&P BSE Sensex closed on a positive note. The broader Nifty50 regained 17, 200 as the index ended at 17,266.75, up 0.31%. Sensex gained 0.33% or nearly by 200 points to 57,808.58. 

"Bulls managed to hold the psychological 17000 level after a fight with the bears. On the daily chart, Nifty has formed a dragonfly Doji pattern suggesting buying at the lower levels. The recovery in the market may continue as long as the index holds above 17000. On the higher end, immediate resistance is visible at 17330. Sustained trades above 17330 may induce further rally in the market," said," said Rupak De, Senior Technical Analyst at LKP Securities.

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Meanwhile, top drags on Tuesday were ONGC, PowerGrid, IOC, SBI Life, Tata Consumer, TCS, Ultratec Cement, L&T, Tech Mahindra and Kotak Bank. Shares that gained in highly volatile trading sessions were Tata Steel, Cipla, Reliance, Bajaj Finance, Divis Laboratories, Bajaj Finserv, Asian Paints and Titan were among gainers.  

Metal, Pharma, PSU Bank and healthcare sectors outperformed the benchmarks as the indices gained between 0.40% to 0.70% 

S Ranganathan, Head of Research at LKP securities, said as policy makers face one of the fastest pace of price increases in the developed markets, global stock markets are facing a challenge in pricing the likely actions by central bankers. "Back home, the Nifty opened extremely weak and drifted closer to 17K levels on geo-political worries and soaring oil prices with passive emerging market funds booking profits. As bond yields price in ahead of the RBI policy, supply of paper ahead of a mega primary market offering kept investors circumspect though indices managed to recover substantial lost ground to end in the Green in afternoon trade," the market expert added.