The ongoing Russia-Ukriane conflict has had a spiralling effect on global stock market indices, with a sharp surge in oil prices further forcing forced global markets to plunge.
The Nifty had a significant gap down opening on February 22, only to attract a fresh buying support at lower level, closing just over 17000 today.
Markets continues its unprecedented move by correcting 2% in pre-open and later recovering the 2nd half. Investors are advised to remain cautious with their trades.
Small-caps and mid-caps are being seen to lead the recovery, post the Russia-Ukraine crisis.
17000 will act as very strong support, with 16900 and 16850 levels on breach. 17160 will act as very strong resistance, if Nifty goes beyond these levels than next stop will be around 17225.
Russia recognized the independence of separatist regions in Ukraine thereby inviting the possibility of severe sanctions being imposed by the US & EU, amid warmongering concerns. This, at a time, when global markets were just recovering from the worst of the pandemic.
Wall Street, and Dalal Street are proving how global incidents can have an impact on the emotional investment of investors, apart from their holdings. It also becomes difficult to uphold famous sayings such as that of Peter Lynch.
The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed
PETER lYNCH
Selling pressure increased across several Pharmaceutical & auto ancillary companies with exposure to the EU. Despite a recovery in afternoon trade, almost all sectoral indices ended in the red due to geopolitical tensions.
At close, the Sensex was down 382.91 points or 0.66% at 57300.68, and the Nifty was down 114.50 points or 0.67% at 17092.20. About 684 shares have advanced, 2589 shares declined, and 82 shares are unchanged.
Tata Steel, TCS, BPCL, Tata Motors and SBI Life Insurance were the top Nifty losers. Gainers included M&M, Bajaj Finserv, Eicher Motors, Hindalco Industries and ONGC.
All sectoral indices ended in the red with IT, metal, oil & gas, capital goods, FMCG, realty and PSU bank indices down 1-3 percent. BSE midcap and smallcap indices fell 0.7-1.6 percent to round off the overall slump.