Ukraine, inflation worries about volatility in Sensex after spurt in election results

The failure of high-level talks between Russia and Ukraine to defuse the war also helped torpedoes a brief rebound in equity.

“Volatility is likely to be higher as Russia-Ukraine peace talks end with no progress on the ceasefire. We believe, IT and software stocks are also likely to come under pressure, as inflation The benchmark 10-year US Treasury note yield rose to 2% after the release of the data,” said Prashant Taapsee, Vice President (Research), Mehta Equities Ltd.

The 30-share BSE benchmark Sensex closed 817.06 points or 1.50 per cent higher at 55,464 on Thursday, mainly driven by the BJP’s strong performance in the state polls.

Analysts also say that caution is also advised as the Fed will meet next week.

“Street now believes that Russia-Ukraine conflict will lead to an even higher inflation print in the coming months. The biggest support for Nifty lies at 16321 points and then at 15921 points. Nifty below 15921 zone, expecting a selling waterfall which With intra-month perspective, Nifty can take a further downside by 14251 points. From chartist point of view, the technical scenario will improve significantly only when Nifty closes above 200 DMA at 16959 points.”

Mohit Nigam, PMS head of Hem Securities, said: “Global stock markets fell yesterday as key peace talks between Russia and Ukraine stalled, accelerated by poor growth outlook. US stock markets also fell, tech stocks Coming in the way of the U.S., data showed consumer prices rose in February, bolstering the case for the Federal Reserve to raise interest rates later this month. The BJP’s victory has boosted market confidence. The ECB and the US Federal Reserve are scheduled to meet in the coming days, so caution is advised.”

“On the technical front, Nifty has immediate support and resistance at 16,200 and 16,800. The immediate support and resistance for Bank Nifty lies at 33,500 and 35,500.”