Sensex jumps 600 points after 5-day loss. Analysts warn volatility to continue2 min read . Updated: 19 Mar 2021, 06:54 PM IST
- Indian markets witnessed a smart recovery from its morning weakness and ended sharply higher
Indian stock markets ended sharply higher today, snapping a 5-day losing streak. Recovering from early lows, BSE Sensex ended 641 points to settle at 49,858.24. The broader NSE Nifty surged 1.28% to finish at 14,744. In broader markets, BSE midcap and smallcap indices ended 1.35% and 0.41% higher respectively. However, for the week, both Sensex and Nifty were 1.8%.
A pullback in US Treasury yields from 14-month highs brought back some risk appetite into the market. NTPC was the top gainer in the Sensex pack, rallying 4.58%, followed by HUL, PowerGrid, Reliance Industries, ITC, UltraTech Cement and HCL Tech.
On the other hand, L&T, Tech Mahindra, Bajaj Auto and Titan were among the laggards, slipping up to 1.20%.
Here is what analysts said on today's market performance:
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
"The market may remain volatile in the near term given volatility in the bond yields, concerns over the rising commodity prices and risk of increase in inflation. In addition, resurgence of covid cases continues to worry the market and hence it may continue with its roller coaster ride. Given the likelihood of high volatility continuing in the market for some time, investors would do well by accumulating good quality companies on decline in the market ."
Deepak Jasani, Head of Retail Research, HDFC Securities
"Nifty has showed remarkable bounce from the intra-day lows on March 19. One will have to watch as to whether this uppishness continues early next week even after the FTSE rebalancing is done with. US Bond yield moves will be one of the important factors to track. 14919 remains a strong resistance for the Nifty while 14529 could be a support."
Vinod Nair, Head of Research at Geojit Financial Services.
"The highly volatile domestic markets witnessed a smart recovery from its morning weakness and was swinging between gains and losses during the day owing to strong buying seen in FMCG, Pharma and Energy stocks. The unsettling pace of U.S bond yields and a surge in COVID cases worldwide resulted in the global markets trading in red."
Rohit Singre, Senior Technical Analyst at LKP Securities.
"Index closed a day on a positive note at 14745 with gains of more than one per cent and formed bullish piercing candle pattern on the daily chart which stands for a bullish reversal. Once Nifty crossed above 14800 zone bullish piercing pattern will get active and we may see a good move towards immediate hurdle zone of 14900-15000, supports still at 14650-14580 zone holding above said levels structure can be positive."
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
“Downward activity in the long term bond yields and weakness in Brent crude have boosted the sentiment of our market. On a weekly basis and daily basis, the market has formed reversal formation after completing the corrective move at 14350/48580 levels. Even if the correction is completed, the current rally will be called a pullback until the Nifty / Sensex crosses the 15350/51850 levels. The Nifty could go up to 14850/50200 and 14950/50500 levels. If the correction in bond yields continues, it could benefit the Bank-Nifty. If inflation gets under control, FMCG stocks may also rise. 14600/49600 and 14450/49200 would remain important supports. Keep a buy-dips strategy for the coming week. Nifty has formed a “bullish piercing pattern", which means it's has absorbed heavy selling pressure and it ready to move higher."