Stock market rallies 3% to stage strong comeback; Nifty near 17,400, Sensex gains 1700 points

The Indian markets recovered the losses made on Monday, negating Russia-Ukraine tension, as benchmarks Nifty50 and the S&P BSE Sensex ended 3 per cent higher in the closing on Tuesday. Broader Nifty reclaimed 17, 300, while the Sensex surged nearly 1700 points, aided by auto and FMCG stocks. The two indices ended near 17,400 and above 58,100 in a major pull back on Tuesday.  

The market witnessed a strong pullback rally after a big correction that occurred in the market on Monday, said Vijay Dhanotiya, Category Lead- HNI Products at CapitalVia Global Research Limited. 

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"While sustaining above 17,200 is the key factor from a short-term perspective, market research suggests, a decisive breakout above the zone of 17400-17450 could open the gate for a movement till 17800. The momentum indicators like RSI, MACD are indicating a positive outlook to continue and market breadth to improve further after the decisive level breakout of the resistance zone," said the expert. 

Meanwhile, the 12-share Nifty Bank too gained more than 1100 points to end above 38100. Nifty mid cap and small cap too gained between 0.70% to 1 per cent amid buying interest.  

Sectorally, Nifty Auto, media, PSU Bank and FMCG gained up t0 2.5% on Tuesday as all sectoral indices ended in the green.  

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.   

"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," said S Ranganathan, Head of Research at LKP securities. 

He added that the narrative for the day, however, was the fact that investors used the correction to their advantage, thereby triggering short covering amidst encouraging export data for the month of January.