Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed lower on March 02 despite a last hour recovery in indices, due to steady escalation of Russia-Ukraine crisis. Nifty opened gap down in line with other Asian indices and made an intra day bottom at 1250 Hrs. It later rose and the speed of rise accelerated post 1455 Hrs. At close, Nifty was down 1.12% or 187.9 points at 16605.9.
On a day when the volumes on the NSE were higher than recent averages, Metals and Power indices rose the most, while Realty, Banks, Auto and Telecom indices fell the most. BSE Smallcap and Midcap indices fell 0.12-0.17%.
Asian stock markets are mostly lower on Wednesday, following the broadly negative cues overnight from Wall Street and oil prices headed higher, amid concerns about the economic impact of the escalating Russia-Ukraine war and the stringent sanctions imposed on Russia by the U.S. and several Western countries. European stocks have inched up on Wednesday morning after opening in the red.
The Indian manufacturing sector continued to expand in February, with the sector's manufacturing Purchasing Managers' Index (PMI) rising to 54.9 from 54 in January.
Nifty recovered from the noon lows to cut the day losses by the end of day. Advance decline ratio is now even suggesting selling is concentrated in large cap stocks. Nifty has formed a doji but its high low range for the day is within that of the previous session. This reduces the predictive power of a doji which is normally a reversal signal. Soaring energy prices are increasing fears of "stagflation" as oil prices surged past $111 a barrel. 16482-16748 could be the band for the Nifty in the near term.