Daily Market Commentary - Jan 19, 2022 - Bonanza Portfolio

Mr Vishal Wagh, Research Head - Bonanza Portfolio

Benchmark indices continued the selling pressure on the second consecutive day with the Nifty sliding below 18,000. Auto, metal, power, and oil & gas indices ended in the green, while selling was seen in the bank, FMCG, IT, pharma, and realty sectors. BSE midcap index fell 0.3 percent and the small-cap index ended flat. Both Nifty and Sensex closed at 17,938 and 60,098 respectively.

On the daily chart, Nifty has formed a bearish engulfing pattern indicating a short-term trend reversal. Two back-to-back significant red candles on the daily chart indicate weakness in the market which may extend over the near future. Going ahead, the index has to close above 18340 to continue its upward trajectory and on the downside, now 17,850 should act as immediate support following which next important support will be 21day EMA placed at 17,800.

On the global front, risk sentiments took a blow as rising inflation resulting in elevated bond yield along with the ongoing geopolitical tensions and surge in oil prices weighed on investor confidence. The UK's inflation rate rose to 5.4% in December from 5.1% in November owing to rising demand, surging energy costs, and supply constraints. On the domestic front, Cabinet has approved infusion of Rs 1,500 crore in the Indian Renewable Energy Development Agency and also approved around Rs 1000 crore for the State Bank of India for the waiver of "interest on interest".

Asian Paints, Shree Cements, Infosys, Grasim Industries, and HUL were the top Nifty losers, while gainers included ONGC, Tata Motors, SBI, Coal India, and UPL.

Source : Equity Bulls

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DailyMarketCommentary Nifty Sensex BonanzaPortfolio