Market pared early morning losses on positive global signals and hopes that the RBI will opt for the status quo at their meeting scheduled for the first week of April. Market closed the highly volatile March session at daily highs, supported by auto, banking, oil & gas and metals stocks. To finish, the Sensex was up 231 points, to 57593 and the Nifty was up 69 points to 17222. The current volatility is due to increased commodity prices and the resulting downgrade of future earnings growth. Product prices have been increasing steadily and are expected to increase further in the future, affecting demand and margin. Uncertainties surrounding rising Covid cases, particularly in China, also contributed to weakness. Indian equities showed resilience and bounced back into the green after a positive European market. Technically, the Nifty formed like the bullish hammer candlestick pattern on the daily chart, also closed above 50 days exponential moving average which indicates positive moves in the coming days. An indicator MACD pointed to a positive crossover on the daily time frame. Currently the index has support at 17045 while resistance lies at 17273. Bank Nifty has support at 34656 while resistance lies at 36197. We can expect this volatility to moderate due to the end of the war, commodity prices and supply constraints.
Resistance: 17273, 17393, 17491
Support: 17045,
16956, 16836
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