Monday, March 21, 2022

HERE ARE 3 FACTORS AFFECTING SENTIMENT THIS WEEK

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Today the market was down about 1%, broadly along expected lines after last week's 4% rally. At the close, the Sensex was down 57,292, down 571 points, while the Nifty was down 169 points at 17118.

 1 Russia-Ukraine War

Russian forces continue to advance on Kyiv, the capital of Ukraine, aggressively shelling cities amid heavy resistance from Ukrainians and their forces, suggesting the war is unlikely to end soon. Peace talks between the two sides have made little progress.

2 Global cues

Asian markets traded mixed as participants closely watched the war between Ukraine and Russia. Hong Kong's Hang Seng and South Korea's Kospi fell 0.89% and 0.77% respectively, while Japan's Nikkei gained 0.65%.

3 Oil prices

Crude oil prices regained strength on tight supply fears after talks between Ukraine and Russia officials stalled. Hopes that the Covid situation in China is less scary than expected also supported prices. International benchmark Brent crude futures have remained volatile since, after suffering a correction of about 20 percent from March highs. Brent traded at $112.3 a barrel, up 4 percent from the close on March 19. Volatility in prices and oil above $100 is a risk for importers including India.
consolidation can be seen in the near term, given the sharp rally in previous sessions but as long as the index holds the crucial 17,000-mark, traders should not get worried about the current fall.On the flipside, 17,500 could act as a near-term resistance followed by 17,800

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