Daily Markets Wrap - Feb 25, 2022 - HDFC Securities

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

Nifty logged the second worst week in three months on Feb 25 despite the advance in Friday's session which recouped some of the steep losses from the seven-day losing streak, longest in two years. Nifty opened gap up and rose to make an intra day high at 1045 Hrs. It later consolidated and closed a little lower than the intra day high. At close, Nifty was up 2.53% or 410.4 points at 16658.4. In the process, Nifty was the best performer in the Asian region.

On a day when the volumes on the NSE were higher than recent average, all sectoral indices ended in the positive with Realty, Power and Metals leading the pack. BSE Smallcap index gained 4.17% while Midcap index rose 4.07%.

Asian markets rebounded on Friday and European stocks were higher Friday morning following Wall Street's surprising overnight reversal, as investors weighed the longer-term impact of tough Western sanctions against Russia after it unleashed troops, tanks and missiles on Ukraine.

Nifty recovered smartly on Friday in line with most global markets. Advanced decline ratio too improved sharply to much above 1:1. On weekly basis, Nifty fell 3.58%, the largest weekly fall since the week ended November 26, 2021. While the developments on the Russia Ukraine front will keep influencing the directions of the market, resumption of supply disruptions and commodity inflation will hurt a lot of economies at a time when they were starting to recover post Omicron threat. On rises, Nifty could face resistance from the 16837-16900 band, while 16410 could offer support in the next few days.

Source : Equity Bulls

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