Daily market commentary - 27th February, 2020 - BONANZA PORTFOLIO LTD

Mr. Vishal Wagh, Research Head

"On Monthly expiry day, Nifty opened with gap down and extended its losses till 11536 and then bears started recovering their shorts to take Nifty to 11580 levels, throughout the day there was a rollercoaster ride for the Future and Options trader. In the last hours of trading, bulls managed to cover lost ground and pulled Nifty above major support levels of 11614. Though midcap and small caps won't able to recover as Nifty, so they underperformed it significantly. In the case of sectors, Pharma, Private banking and FMCG participated in recovery but PSUbanking, Reality, and Media have failed to do so. Going forward, levels of 11540-11520 will play as a major support. Whereas, resistance will be seen at 11740-11880 levels. Nifty may have created a very short term bottom. So, it is advisable for the bear to sell only after the confirmation. Bulls can hold long with stop loss below 11500 levels."

Source : Equity Bulls

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