Daily Market Commentary - Feb 22, 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 below 17,100. All the sectoral indices ended in the red with IT, metal, oil & gas, capital goods, FMCG, realty and PSU bank indices down 1-3 percent. BSE midcap and small-cap indices fell 0.7-1.6 percent. Both the benchmarks closed at 17,092 and 57,300 respectively.

Index started off with gap down opening tracking weak global cues on account of Ukraine - Russia crisis. A sharp recovery was seen in the later half of the session where buying was seen in most of the stocks on account of shorts covering. This is the 5th straight session where Indian bourses traded weaker on account of geopolitical tension around the world. 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 17,445 levels. Going ahead, 17,500 needs to be broken decisively in order to continue upside trajectory while 16,800 remains an important make or break level.

On the global front, Oil hit its highest since 2014 on Tuesday as tensions between Russia and Ukraine escalated after Moscow ordered troops into two breakaway regions in eastern Ukraine, adding to supply concerns that are pushing prices to near $100 a barrel.

The United States and its European allies are poised to announce new sanctions against Russia after President Vladimir Putin formally recognised the two regions in eastern Ukraine, escalating a security crisis on the continent.

Tata Steel, TCS, BPCL, Tata Motors and SBI Life Insurance were the top Nifty losers. Gainers included M&M, Bajaj Finserv, Eicher Motors, Hindalco Industries and ONGC.

Source : Equity Bulls

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