Indian equity market begin 2022 on a cheerful note - Swastika Investmart Ltd

Mr. Santosh Meena, Head of Research, Swastika Investmart Ltd

Indian equity market snub sharp rise in covid cases and begin 2022 on a cheerful note where the laggard Banknifty witnessed the highest gain today. There was a risk on sentiment today in the Indian equity market where the high beta sector outperformed defensive names. We have our inherent strength as the global cues were mute but we are still far below our all-time high while most developed markets are trading at their life highs. Most of the auto stocks also did well today on the back of better than expected sales numbers where Eicher Motors outperformed while M&M ends into the red due to weak tractor sales numbers.

Technically, Nifty is giving a proper follow-up to the bullish morning star candlestick formation formed on the weekly chart and it also manages to close above the cluster of 100 and 50-DMA. The previous swing high of 17640 is an immediate hurdle however there is a good chance that Nifty may take out this level for a move towards the 18000-18200 zone. On the downside, 17500 will act as immediate and strong support as we have seen meaningful put writing at this level whereas it is also a cluster of 50 and 100-DMA.

Banknifty witnessed a sharp short-short covering rally after it managed to cross the cluster of 20 and 200-DMA which is currently placed in the 35700-35800 zone. On the upside, it is likely to head towards the cluster of 50 and 100-DMA that is currently placed at 37250 level while 36000-35700 will act as a strong support zone now.

In terms of cues, we don't have any major trigger tomorrow other than updates related to covid while the minutes of the US fed meeting will be out on Wednesday. If we look at the profile of the stocks which rallied today then we can expect some buying figures by FIIs.

Source : Equity Bulls

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IndianMarkets Nifty Banknifty SwastikaInvestmart