Meanwhile, the volatility gauge India VIX ended at 19.79, down 8.39% from the last closing.
Here’s how analysts read the market pulse:
Rupak De, Senior Technical Analyst at LKP Securities said Nifty’s falling channel breakout on the hourly chart suggests growing optimism in the markets. Moreover, the index has moved above the 21EMA on the hourly timeframe, keeping the sentiment slightly positive, with a possibility of a rise towards 23,800–24,000.
He placed crucial support at Rs 23,400, warning that a fall below this level might reactivate the bears in the market and the index could fall back to the recent low of 22,950.
US markets
Wall Street’s main stock indexes rose onTuesday, led by gains in financial stocks, as investors awaited the Federal Reserve’s decision on interest rates in the face of rising energy costs due to the raging Middle East conflict.
The central bank began its two-day monetary policy meeting on Tuesday and traders expect borrowing costs to be left unchanged when it announces its decision on Wednesday. Rising oil and natural gas costs stemming from the conflict in the Middle East, along with tariff-induced price increases, will be the main focus of the meeting as policymakers weigh inflation concerns against signs of a weakening jobs market.
Brokerages lifted their outlooks for energy prices that are likely to dampen economic growth, a factor that the Australian central bank also flagged when it hiked interest rates earlier in the day.
Fed Chair Jerome Powell’s outlook on interest rates will be scrutinized on Wednesday, at a time when rate futures suggest just one 25-basis-point cut towards the end of the year, according to LSEG-compiled data, down from around two before the war.
European Markets
Major European indices were trading with sharp uptick on Tuesday. UK’s FTSE 100, Spain’s IBEX 35, French CAC 40, Germany’s Dax and Stoxx 600 were trading up between 0.5% and 1.3% around 1:00 p.m. GMT (6:45 pm).
Tech View
Decoding the charts, Bajaj Broking said Nifty has formed a small bullish candle with shadows in either direction signaling extension of pullback for the second session in a row amid high volatility on account of the weekly expiry and volatile global cues. Nifty is seen rebounding in the last two sessions from extreme oversold territory after testing the psychological 23,000 level, he added.
“Going ahead, index holding above Tuesday low (23,346) will signal extension of the pullback towards the immediate resistance of 23,700-23,800 levels being the confluence of the last week breakdown area and 8 days EMA. Key short term support is placed in the 22,700–22,400 zone, which coincides with the previous gap area and the 78.6% retracement of the earlier major up move,” the brokerage said.
Most active stocks in terms of turnover
Eternal (Rs 545), Urban Company (Rs 499 crore), Bharti Airtel (Rs 295 crore), REC (Rs 281 crore), Cholamandalam Investment and Finance Company (Rs 185 crore), Max Healthcare Institute (Rs 139 crore) and ICICI Prudential Asset Management Company (Rs 131 crore)were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
Urban Company (Traded shares: 4.54 crore), Eternal (Traded shares: 2.31 crore), Vodafone Idea (Traded shares: 2.16 crore), SpiceJet (Traded shares: 1.61 crore), REC (Traded shares: 83.22 lakh), YES Bank (Traded shares: 69.86 lakh) and Suzlon Energy (Traded shares: 61.32 lakh), and were among the most actively traded stocks in volume terms on BSE.
Stocks showing buying interest
Lloyds Metals And Energy, Eternal, Tata Steel, Gokul Agro Resources, DCM Shriram International and Shaily Engineering Plastics were among the stocks that witnessed strong buying interest from market participants.
52 Week high
Today, 56 stocks hit their 52 week highs while 440 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Acutaas Chemicals, Aeroflex Industries, DCM Shriram, Gaudium IVF and Women Health, Ipca Laboratories, Jindal Poly Films and Sizemasters Technology.
Stocks seeing selling pressure
Among the large cap names were Wipro, Cipla and Tata Consumer Products. Other stocks which witnessed significant selling pressure were Ola Electric, IDBI Bank, Persistent Systems, Shyam Telecom, Mahamaya Steel Industries, Prudential Sugar Corporation and Orient Press.
Sentiment meter favours bulls
Heavyweights like ICICI Bank, Bharti Airtel and Larsen & Toubro (L&T) lifted the markets, as the breadth stayed positive in the overall markets. Out of the 4,411 stocks that traded on the BSE on March 17, Tuesday, 2,332 stocks witnessed advances, 1,930 saw declines while 149 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)