Bulls are back! Sensex zooms over 1300 pts; here's what experts have to say

It turned out to be a great Friday for all the investors on Dalal Street as the benchmark indices staged a strong rebound amid positive global cues. Sensex zoomed over 1300 points and Nifty also jumped over 400 points after US and the Western powers imposed harsher sanctions on Russia.
 
On Thursday, investors lost over Rs 13 lakh crore after Russia attacked Ukraine. Market cap of BSE-listed firms fell by Rs 13.32 lakh crore after investor wealth declined to Rs 242.28 lakh crore against Rs 255.68 lakh crore in the previous session. Sensex crashed over 2,700 points to 54,529 and Nifty plunged over 800 points to 16,247.
 
The markets witnessed a smart recovery today but what's next? Will the bull run continue? Here's what experts say:
 
Mohit Nigam, Head -PMS, Hem Securities
 
"Indian equity benchmarks made gap-up opening on Friday tracking firm trade in global markets after US and its allies announced harsher sanctions against Russia. Domestic indices soon extended their gains and are trading higher with gains of over 2 per cent each in early deals on broad-based buying.
Most of the Asian markets traded higher following the broadly positive cues overnight from Wall Street, as traders picked up stocks at a bargain after the recent sell-off amid the continued escalation of the Russia-Ukraine crisis."
 
"In the rock-solid session of trade, benchmark equity indices maintained their upward momentum in noon deals on account of buying in front line counters and taking cues from global counterparts," he said.
 
Sharing the technical view, he said that Nifty50 may take immediate support and resistance at 16,410 level and 16,850 level respectively. In case of Bank Nifty 35,550 and 36,950 level will act as immediate support and resistance.
 
Vaibhav Sanghavi, Co-CEO, Avendus Capital Public Markets Alternate Strategies
 
"The current market conditions are a good example of how risk factors emanate from geopolitical tensions, and the effect it has on investments. While geopolitical uncertainties are ruling the roost currently, other pertinent concerns that could shake the markets are expected in March," he said.
 
"UP election results, LIC IPO and Fed meet on interest rate hikes will continue to be important events, going forward. Against this backdrop, volatility in global and local markets will remain elevated, leading to de grossing of books. Markets are likely to be volatile in the month of March and post that we may see some stability return," he noted.
 
"The correction in the markets may give investors an opportunity to enter good businesses. We will be watching out for cues on global volatility and oil prices to subside for signs of stability," he added.
 
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities
 
"Sharp recovery in the markets came on the back of a rally in global equity indices. The relief rally was expected as the markets world over, including in India, had been falling continuously for the past seven sessions and hence recovery was on the cards," Athawale said.
 
"If the war between Russia and Ukraine continues, the upmove could be short-lived and once again market sentiment could turn weak with bouts of volatility going ahead," he added.
 
Gaurav Garg, Head of Research, Capitalvia Global Research
 
"Benchmark equity indices maintained their upward momentum in noon dealings during the rock-solid session of trade, owing to purchasing in front-line counters and adopting cues from overseas peers. Investors were relieved by a series of strong sanctions imposed by the US and other countries against Russia," Garg said.
 
"The Indian economy is now prepared for recovery, according to Chief Economic Advisor (CEA) V Anantha Nageswaran, but the high crude oil price is a matter for concern. The country's banking industry is stable, that capital is plentiful, and that credit demand is on the rise," he added.