In the week ended March 11, there was a good recovery in the Sensex-Nifty and it managed to close with a gain of more than 2 percent. Last week, the decline of 4 consecutive weeks appeared to be restrained. Significantly, the ongoing war between Russia and Ukraine has been casting its black shadow on the market for the last several days. The effect of which appeared to be diminishing last week.
In the week ended yesterday i.e. March 11, the Sensex closed at 55,550.3 with a gain of 1,216.49 points or 2.23 per cent. On the other hand, Nifty closed at 16,630.5 with a gain of 385.15 points or 2.37 percent.
All sectoral indices closed in the green for the week. The Nifty Media and Pharma indices saw a rise of 6 per cent. On the other hand, IT and Realty index saw a rise of 3 per cent. Looking at the broader market, the BSE Midcap index gained 3 per cent and the Smallcap index gained 3.2 per cent, while the Largecap index closed with a gain of 2.2 per cent.
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This week, FIIs sold Rs 24,688.44 crore in the Indian markets while DII bought Rs 17,729.12 crore. On the other hand, in the month of March so far, FIIs have sold Rs 43,303.05 crores while DIIs have bought Rs 30,329.05 crores.
There have been around 90 smallcap stocks which have gained 10-38 per cent. These include Take Solutions, Dwarikesh Sugar Industries, BGR Energy Systems, IOL Chemicals, Khaitan Chemicals, Gujarat Ambuja Exports, HEG, Avadh Sugar & Energy, Reliance Infrastructure, Sarda Energy and Minerals, JK Paper and Gujarat Narmada Valley Fertilizers & Chemicals. .
However, stocks like KBC Global, JK Cement, Elgi Equipments, GTPL Hathway, Future Lifestyle Fashions, Jindal Stainless, KEC International, Quess Corp and Future Retail fell 8-14 per cent.
How will the market move next week
Ruchit Jain of 5paisa.com Says that last week started with weakness amid weak global cues but there was a good recovery in the market. If we look at the recent market data, then the level of 16800 has become very important for Nifty. Which was its important support for a long time but in the last week of February this support was broken. After that a sharp pullback was seen in the market. In this pullback, the level of 16800, which was once a support, has now become a resistance level. If Nifty wants to move upwards, then it has to break the barrier of 16800 now.
He further said that Russia and Ukraine crisis is the main reason for the recent volatility of the market. Due to this, there is a sharp rise in commodity prices and it is also having an impact on equities. Only any good news coming from Ukraine-Russia front can give relief to the market. Until Nifty crosses the hurdle located in the zone of 16800-17000, traders would be advised to bet only on select stocks and very aggressive Don’t take the position. At present, support is visible for Nifty in the zone of 16,350 and 16,200.
Vinod Nair of Geojit Financial Services says that next week the market will focus on commodity prices and the diplomatic progress made between Russia and Ukraine. If both these global trends remain positive then Indian market will do well. On the other hand, if both these trends remain negative, then there will be volatility in the market again. Apart from this, the market will also keep an eye on the next week’s inflation data for India and America and the results of the meeting of Bank of England and US Fed.