Daily Market Commentary - Feb 18, 2022 - Bonanza Portfolio

Mr Harsh Parekh, Technical Analyst - Bonanza Portfolio

Benchmark indices were trading in a tight range with no conviction on either sides as Nifty ended slightly below 17,300. On the sectoral front, except bank and capital goods, all other indices ended in the red with oil & gas and realty indices losing 1 percent each. BSE Small-cap and Midcap indices also ended lower. Both the benchmarks closed at 17,276 and 57,833 respectively.

Today, the Index saw range-bound swings as selling got intensified in the final hour, following almost the same trading pattern as that of yesterday. On the daily charts, it wasn't able to break the downward sloping trendline thereby continuing the lower highs lower low formation. Price action suggested that 50 day EMA is acting as strong resistance which is placed near 17,470 levels. Going ahead, 17,500 needs to be broken decisively in order to continue upside trajectory while 17,200 remains a good support.

On the global front, headwinds have strengthened due to a rise in bond yields, an increase in oil prices, and geopolitical risks. On domestic front, earnings have been largely stable and India should remain one of the best investment destination for long term perspective.

ONGC, Divis Labs, UltraTech Cement, Cipla and Shree Cements were the top Nifty losers. Gainers included Coal India, SBI Life Insurance, HDFC, Bajaj Auto and Larsen and Toubro.

Source : Equity Bulls

Keywords

DailyMarketCommentary BonazaPortfolio Nifty SmallCap MidCap