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Equity Markets continued to witness volatility as various developments happened over the weekend on the Russia Ukraine front. Indian markets opened lower in line with global peers as Russia kept its nuclear weapons on alert on Sunday. However hopes of some resolution emerged after both the countries agreed to peace talks. 

Nifty opened down but recovered from day’s low levels to close the session with gains of 135 points (+0.8%) at 16,794 levels. For now Nifty has managed to close above the crucial 200 DEMA of 16,709 and needs to sustain above these levels for the positive momentum to continue.

Broader market too closed in positive territory with gains of 0.9%. Among sectors, Metals were top gainers - up 5% as commodities prices have rallied to multi-year high on account of sanctions imposed on Russia resulting to array of supply risk. Oil & Gas was up 2%, followed by IT, Consumer durables, FMCG, Pharma, Media and PSU Bank. While selling was seen in Auto, Financial Services and Private Banks. India VIX inched up by 6.8% to 28.6 levels.

While markets have seen a pullback – volatility is expected to remain high over the next few days. Investors are uncertain over how the war would progress. Now, markets will keep an eye on the outcome of talks between Ukrainian officials and their Russian counter parts. While traders need to remain cautious of sharp volatility, Investors can use the current dip to gradually add quality blue chip companies in their portfolios.

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