The benchmark Nifty suggests near-term bullish strength as it moved above the central Bollinger Band formation, although it would remain fundamentally volatile with a particular focus on IT stocks.

This week India’s benchmark rebounded strongly with a weekly gain of over 3% on hopes of positive progress in the Russia-Ukraine peace talks.

Investor sentiment was also supported by lower crude prices and an unprecedentedly high GST collection, as well as a likely end to restrictions related to the COVID-19 pandemic.

Crude price developments and the outcome of RBI monetary policy meetings would be the main areas of interest for investors next week.

We expect the first half of FY23 to see continued volatility primarily due to expectations of higher inflation and faster-than-expected policy rate normalization by central banks.

Technically, the Nifty Index has formed a bullish engulfing candlestick pattern on the daily chart and also settled above the 21-day exponential moving averages.

On the charts, a momentum indicator RSI (14) and MACD indicate a positive bias. Overall, the Nifty index has strong support at 17,330 points, while on the upside, 17,950 may present an immediate headwind for the index.

Top Winners

M&Ms: Improved business momentum, particularly for the SUV segment, drove the share price higher.

Tata consumer: Rise in share price after the announcement of the consolidation of Tata Coffee with Tata Consumer Products and also the acquisition of a stake in a British subsidiary.

Axis Bank: The share price rises after news of the acquisition of Citigroup’s retail banking business in India for Rs. 12,325 cr.

Main losers

Hindalco Industries: Margin concerns over the US operation (Novelis) and the announcement of a massive investment plan weighed on the share price

Motocorp Heroes: News of accusations of false spending and cash transactions sent the stock price plummeting.

CGSB: Falling international oil prices and concerns over OFS issuance weighed on the stock price.

(Sachin Gupta is AVP-Research, Choice Broking)

Published on: Saturday 02 April 2022, 19:52 IST