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Beaten-down domestic markets are expected to see a bounce-back despite all turbulences. According to analysts, uncertainty on all fronts include Ukraine-Russia tension, FPI selling,higher crude and commodity prices and impending rate-hike.
DIIs aggressive buying
According to analysts, the market is showing some semblance of resistance as domestic institutional investors have started accumulating Indian stocks more than FPI selling in the last few days.
DIIs bought shares worth ₹2,393 crore on Monday against FPIs selling of ₹2,261 crore; on Tuesday, they bought ₹4,108 crore worth shares even as FPIs sold ₹3,245.52 crore.
SGX Nifty at 17,245 signals a gap-up opening of 185 points for Nifty, as Nifty futures on Tuesday closed at 17,061 on the NSE. While Japan markets are closed, the rest of the Asia-Pacific region eked out a marginal gain between 0.1 per cent 1 per cent.
"The rising tensions between Russia and Ukraine have perplexed market participants and have resulted in increased volatility. Although the indices recovered well from their supports, the intraday volatility was high making it difficult for traders," said Ruchit Jain, Lead Research, 5paisa.com
Technically still weak
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: The near term trend of Nifty continues to be weak. Having tested the crucial supports of 16800 levels again, one may expect a minor upside bounce in coming session from here or from slightly lower levels. As per the pattern of lower tops, one may expect Nifty to tumble again from the highs of 17300-17400 levels in the next few sessions".
Mitul Shah, Head Of Research at Reliance Securities, "The geopolitical pot is boiling. If that is no enough, the Fed’s aggressive tone on rate hike is keeping market participants on the edge. The LIC’s upcoming IPO – India’s biggest ever public listing--continues to make waves.
"As the ball gets rolling with mega roadshows to connect with top-notch investors, the IDBI Bank stake sale comes up next on the Centre’s check list. As the economy looks to get on to the running track, the ongoing disinvestment process will for sure come as a shot in the arm for the government," he added.
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