15 Mar , 2022 By : Kanchan Joshi
Stocks extended gains from last week to end more than 1% higher on Monday, as oil prices declined on hopes of progress in Russia-Ukraine peace talks. The BSE Sensex gained momentum as the session progressed to close 935 points higher at 56,486. Similarly, the Nifty rose 1.45% to settle at 16,871 in the previous session.
Asian stocks tumbled on Tuesday amid surging covid cases in China, Ukraine and the first US, interest rate rise in three years, which could come this week. Meanwhile, SGX Nifty indicates a flat-to-negative start to the Indian stock markets today.
"Besides, updates on prevailing geopolitical tension and the performance of global markets will remain in focus. Since Nifty has surpassed the critical hurdle at 16,800, it can extend the rebound to a 17,100 zone. In case of any dip, 16,700 would act as immediate support. Meanwhile, participants should maintain their focus on sector/stock selection," said Ajit Mishra, VP - Research, Religare Broking Ltd.
Retail inflation hit an eight-month high of 6.07% in February, remaining above the RBI's comfort level for the second month in a row, while wholesale price-based inflation soared to 13.11%, government data showed on Monday.
“The inflation trajectory is weighed heavily on the upside with elevated commodity prices, pass through of earlier fuel price hikes and the higher raw material costs. However, we do not expect any shift in policy decisions and stance in near term as RBI continues to focus on durable growth," said Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank.
Nifty index levels to watch
"The market is now showing an early signs of decisive upside breakout of cluster resistance of around 16,800-17,000 levels. A strong upside breakout could bring upper levels of 17,500 in a quick period of time. Any failure to sustain above 16,800 levels in the next 1-2 sessions could trigger another round of downward correction from the highs. Immediate support is placed at 16,750 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
"Nifty has given breakout from a falling channel on the daily timeframe suggesting a rise of bullishness. In addition, the benchmark index has moved above the previous swing high which is again a bullish set-up. The trend may remain positive as long as it sustains above the said channel. On the lower end, support is visible at 16,650 whereas on the higher end resistance is pegged at 17,000," said Rupak De, Senior Technical Analyst at LKP Securities.
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