Nifty staged a smart turnaround led by gains in Reliance Industries and IT stocks

Mr. Devarsh Vakil - Deputy Head Retail Research, HDFC Securities

A bout of short covering helped Nifty to rise more than 300 points intraday lows on report that Ukrainian President Volodymyr Zelensky was prepared to discuss a commitment from Ukraine not to seek NATO membership in exchange for a cease-fire, the withdrawal of Russian troops and a guarantee of Ukraine's security. Market players were also enthused by the statement of the Reserve Bank of India that it will ensure ample liquidity to support the recovery of its economy, signaling above-target inflation was not as much of a threat.

Decliners outnumbered the advancing stocks. Cash volumes were marginally lower as compared to yesterday, action was concentrated in F&O stocks were volumes were sharply higher by 50% comapred to yesterday.

Index heavyweight Reliance surged by 2.5% on back of news reports that Singapore GRM has risen to USD12.54/bbl vs 5 Day Average of USD7.76/bbl.

Nifty is up more than 1650 points from the recent bottom of 15671, registered on 8th March 2022. Amongst the sector, Technology, OIL & Gas and Auto were out perfromers while reality and FMCG Indices ended in the red. Support for the Nifty has now shifted up to 17100 and same should be kept as a stop-loss in trading long positions.

Source : Equity Bulls

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