Daily Market Commentary - Feb 21, 2022 - Bonanza Portfolio

Mr. Harsh Parekh, Technical Analyst, BONANZA PORTFOLIO LTD

Benchmark indices were trading in a tight range with no conviction on either sides as Nifty ended slightly above 17,200. Except banking, all other sectoral indices ended in red with capital goods, FMCG, metal, oil & gas, pharma, power, realty falling 1-2 percent. BSE midcap and small-cap indices fell by 0.8-2.2 percent. Both the benchmarks closed at 17,206 and 57,683 respectively.

Index started off with gap down opening, tracking mixed global cues on account of Ukraine - Russia crisis. Buying was seen in the first half of the session, but was unable to sustain on account of sellers being active at higher levels. This type of activity was visible almost for the fourth consecutive trading day. On the daily charts, it wasn't able to break the downward sloping trend-line thereby continuing the lower highs lower low formation. Price action suggested that 50 day EMA is acting as strong resistance which is placed near 17,460 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, investors continue to monitor Ukraine crisis amid rising tensions of potential invasion keeping investors on the edge for the second consecutive week. Foreign investors continue to be net sellers for the month of february thereby indicating limited upside as far as the short term is concerned.

Coal India, Hindalco, UPL, ONGC and Adani Ports were the top Nifty losers. Gainers included Wipro, Infosys, Shree Cements, Power Grid Corp and ICICI Bank.

Source : Equity Bulls

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DailyMarketCommentary BonanzaPortfolio Nifty Sensex