Daily Markets Wrap - Feb 24, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty logged its second worst day since March 2020 on Feb 24, due to escalation of geopolitical crisis in Ukraine. Nifty opened with a large gap down and kept falling through the day to close almost at the intra day low. At close, Nifty was down 4.78% or 815.7 points at 16247.9, falling for the seventh consecutive session. In the process, Nifty was the worst performing index in the Asian region.

On a day when the volumes on the NSE were the highest for an F&O expiry day since May 2021, all the sectoral indices ended in the red with Realty, power, Banks, Auto and Telecom falling the most. BSE Smallcap index was down 5.77% while Midcap index was down 5.53%.

Russia launched an all-out invasion of Ukraine by land, air and sea on Thursday, the biggest attack by one state against another in Europe since World War Two. Global stocks plunged and Oil prices broke the $100 a barrel mark (for the first time since 2014) on Thursday, as Russia's invasion of Ukraine raised fears that a war in Europe will fuel higher inflation and derail economic growth.

Moody's Investors Service has raised its GDP growth forecast for India for the current calendar year to 9.5 percent from 7 percent, citing a stronger-than-expected economic recovery from the national lockdown of 2020 and the second wave of the COVID-19 pandemic in mid-2021.

Advance decline ratio has plunged to the lowest since March 12, 2020. Nifty may witness a short term bottom over the next 1-2 days. However the repercussion of these actions in terms of impact on commodity prices, including crude, supply disruptions and the sanctions that can be levied by the western nations remains uncertain. Depending on how this plays out, we may see a next leg down or double bottom after a brief recovery. In case of negative developments gaining momentum, the downside could extend to 15400. In the near term however Nifty could take support at 15880-15952 band while 16410 could offer resistance.

Source : Equity Bulls

Keywords

DailyMarketsWrap HDFCSecurities Nifty Sensex