Terrific Tuesday: Sensex zooms over 1700 points! Will the bull run continue?

After a brutal sell-off on Monday, it turned out to be a terrific Tuesday on Dalal Street as equity benchmark Sensex zoomed over 1,700 points and the Nifty recaptured the 17,000 level mark.
 
The markets ended sharply higher after a report said that some troops in Russia's military districts adjacent to Ukraine are returning to base. Also, the rally was aided by gains in auto, information technology and banking stocks.
 
On Monday, Sensex and Nifty slipped to their 10-month lows amid Russia-Ukraine tensions. Sensex tanked 1,747 points to 56,405 and Nifty plunged 531 points to 16,842.
 
Investors lost Rs 8.47 lakh crore in market wealth with the market cap of BSE-listed firms crashing to Rs 255.42 lakh crore against Rs 263.89 lakh crore in the previous session.
 
Will the bull run continue?
 
Ravi Singhal, Vice-Chairman, GCL Securities said, "The cease-fire is open for talks and some updates are just coming over on the Ukraine and Russia conflict. Hopefully, things will get better soon. This will add the much-needed positivity in the market and it will lead to more upside. Markets can even make new highs in March."
 
Sharing the technical outlook, Palak Kothari, Research Associate, Choice Broking said, "On a daily chart, the Index has taken support from 200 DMA as well as a lower band of Bollinger and formed a big bullish candle which covered the previous gap which suggests strength in the. On an Hourly Chart, the index has given closing above21*50-HMA with the positive crossover which suggests upside momentum for the next session."
 
Moreover, Kothari added that the daily momentum indicator Stochastic & MACD are also trading with a positive crossover which adds strength to prices. At present, the Index has support at 16,800 levels while resistance comes at 17,500 levels. On the other hand, Bank nifty has support at 37,300 levels while resistance at 39,000 levels.
 
"Nifty 50 formed a bullish candle on the daily chart with index managed to close a day below good resistance zone of 17,300 and if index holds above 17300 mark, then we may see more surge towards 17,600-17,800 mark which are another resistance zone on the upside," said Mohit Nigam, Head - PMS, Hem Securities.
 
"Volatility gauge Index tanked 10.31 per cent to 20.61. Also, broader market confirmed an upward move and in turn market breadth was skewed in the favour of bulls. Crucial support for Nifty 50 is 17,000 while Nifty may face some resistance at 17,500," he added.