IGI Logo

Market Update

Nifty : 22,834.30 +325.55 (+1.45%)  Sensex : 75,301.26 +1131.31 (+1.53%)

* The equity benchmark Sensex surged by over 1,100 points, while the Nifty traded above the 22,800 mark, closing at a one-month high. This rally was fueled by positive global sentiment, strong domestic economic data, and significant domestic institutional buying.

* The Nifty broke above its 20-day exponential moving average (DEMA) for the first time in over a month, triggering short-covering in the market. The Nifty rose 1.45%, or 325 points, ending at 22,834, while the Sensex gained 1.5%, or 1,131 points, crossing the 75,000 level to close at 75,301.

* The rally was led by sectors such as Nifty financials, small-cap, mid-cap, realty, NBFCs, exchanges, PSU banks, auto, and metals, all showing gains in the range of 2-3%. This positive momentum was supported by a global market rally, favorable domestic conditions, and technical strength, boosting optimism in Indian equities.

* The Nifty 500 stocks advance-decline ratio was 9:1, indicating increased buying activity in mid- and small-cap stocks, which had fallen 20-35% in recent sessions.

* On the global front, US markets rose 1%, and Asian markets gained up to 2%, driven by expectations that the US Federal Reserve will provide a positive outlook during its upcoming credit policy meeting. This optimism was bolstered by weaker-than-expected US retail sales in February and strong retail sales and industrial production data from China. Domestically, India's robust export growth, narrowing trade deficit (reaching a four-year low), and a 13% year-on-year increase in direct tax collections (to ?21.3 lakh crore) suggested a lower fiscal deficit and strong economic growth, further supporting the market's positive sentiment.

Technical Outlook:

* Nifty Index opened with a strong gap-up of over 150 points, surpassing its resistance level of 22660. Bulls took charge from the first tick, driving the index higher throughout the day. Every minor dip was swiftly bought, indicating strong bullish momentum. The index also gave a decisive breakout from its seven-session trading range and is now holding well above its 20 DEMA, reinforcing the positive trend.

* It formed a bullish candle on daily chart and closed near days high with decent gains of more than 300 points near 22850. Now it has to hold above 22650 zones for an up move towards 23000 then 23250 zones while supports can be seen at 22650 then 22500 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 1.41% at 22902 levels. Positive setup seen in Ind Hotel, BHEL, HAL, Voltas, Havells, Shriram Fin, VEDL, LT, VBL, Godrej Consumer and AB Capital while weakness in TechM, Hind Petro, AU Bank, GMR Infra, Dabur, Wipro, Tata Technologies, ABFRL and Aarti Ind.

* On option front, Maximum Call OI is at 23000 then 23500 strike while Maximum Put OI is at 22500 then 23000 strike. Call writing is seen at 23200 then 23500 strike while Put writing is seen at 22800 then 22700 strike. Option data suggests a broader trading range in between 22300 to 23300 zones while an immediate range between 22600 to 23100 levels.

* LIC explores options in health insurance market amidst growing competition – Company hopes to decide on acquiring stake in a health insurance company by the end of March, its chief executive said on Tuesday. "I am very much hopeful that within this financial year, before 31st March.

* IndusInd raises Rs 11,000 cr via CDs in confidence boost - IndusInd Bank raised Rs.11,000 crore selling certificates of deposit (CDs) on Monday, as the lender moved to shore up its funding position amid deposit withdrawals after it revealed a Rs.2,000 crore accounting discrepancy in its derivatives book.

* Paytm Money gets Sebi registration as research analyst, investment adviser – Company has received approval from the Securities and Exchange Board of India (Sebi) to operate as a registered Investment Adviser. This authorisation enables Paytm Money to offer investment and wealth management services to consumers across the country.

* S&P Upgrades Shriram Finance, Muthoot Finance, Sammaan Capital – Rating agency S&P Global upgraded long-term issuer ratings of Shriram Finance and Muthoot Finance to BB+, and Sammaan Capital to B+. Also, revised long-term rating outlook on Bajaj Finance to positive and company’s standalone credit profile to bbb from bbb-.

* Bajaj Holdings – Company’s board approved proposals to buy 19.95% of each of Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance from Allianz SE. On Monday, Allianz said in a statement it has agreed to sell its 26% stake in Indian joint ventures for about €2.6 billion ($2.8 billion) to local partner Bajaj Group.

* TARC – Real Estate player TARC approve Rs400cr via private placement of bonds.

* Mahindra & Mahindra – Company announce to that it will acquire 57% stake in arm Mahindra - BT Investment for $14.3 million.

* Brigade Enterprises – Company partnered with Gruhas, the investment arm of Nikhil Kamath and Abhijeet Pai, to drive PropTech and sustainability with Rs 300 crore Earth Fund.

Global Market Update

* European Market - European stocks rose as investors prepared for the outcome of a German parliamentary vote on a massive spending package and awaited a call between the US and Russian leaders over Ukraine. UK, France and Germany’s DAX gained 0.3% each.

* Asian Market - Asian shares mostly rose as investors were encouraged by another rally on Wall Street. Japan's benchmark Nikkei 225 gained 1.2%. The Bank of Japan was expected to keep its benchmark interest rate unchanged at a monetary policy board meeting due to wrap up Wednesday. The U.S. Federal Reserve also is due to announce its latest decision on interest rates Wednesday. Hong Kong Index rose 2% after China announced impressive economy data.

* US Data - Housing Starts, IIP, US Fed 2-day policy meeting starting from today and tomorrow to be announce rate decision.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412