Domestic markets to sustain the rally on Thursday as well. SGX Nifty at 16,590 indicates at at least 200-point rally for Nifty, as Nifty futures on Monday closed at 16,385. Equities across Asia-Pacific region climbed back has European stocks overnight saw a strong rally.

While Japan's Nikkei gained over 3.5 per cent, Australian stocks edged up over one per cent; Korea's Kospi and Taiwan's SE surged over 2 per cent. On Wednesday, France and Germany markets 7.1 per cent and 7.9 per cent respectively. Overnight, the US stocks climbed in excess of 2 per cent.

Experts said that the market may charged up in the later part of the day if Bharatiya Janata Party makes resounding win in five assembly elections, especially in Uttar Pradesh.

Ukraine’s soft signal

Rahul Sharma of Equity 99, said: Market showed good positive move today Ukraine's President Volodymyr Zelensky who said he was no longer pressing for NATO membership. However, fresh buying is recommended only after we see some positive movement in Nifty as Russia showed no sign of letting up on its Ukraine invasion. As long as the war lingers and crude remains at higher levels a sustained rally is unlikely.

S. Hariharan, Head- Sales Trading, Emkay Global Financial Services, says after a month of unwinding of Retail single stock long positions, the last couple of days have seen fresh long build-ups – Retail net long is up 15,000 contracts over 2 sessions after dropping 300,000 contracts since end-January.

"News headline risks pertaining to broader markets remain very much in play on account of flaring commodities prices and attendant assumptions on bond yields both globally and domestically. With more central bank meetings coming up in the next week, we expect headline indices to move primarily based on macro news," he added.

Technical signal

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: "On the day of the weekly expiry of the index options, we can see a sharp contraction in the volatility index only after the announcement of the election results."

Nifty may see supports at 16200 and 16100 levels. At higher levels, above 16420, the index would bounce back to 16480 or 16600 levels. A close below 15980 would be negative for the market, he added.

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