Daily Markets Wrap - Feb 28, 2022 - HDFC Securities

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

Nifty reversed early losses to end in the positive for the second consecutive session on Feb 28. Nifty opened gap down and made an intra day low at 0930 Hrs. It later gradually rose to end almost at the intra day high. At close, Nifty was up 0.81% or 135.5 points at 16793.9.

On a day when the volumes on the NSE were higher than recent averages, Auto and Bank indices were down the most, while Metals, Power, Oil & Gas, Consumer Durables and Capital Goods indices rose the most. BSE Smallcap index and Midcap indices rose 0.80-0.83%.

Buoyed by Wall Street gains on Friday, key Asian stock indices were mostly higher on Monday. Europe's stock markets sank Monday after world powers imposed fresh sanctions on Russia over its invasion of Ukraine, while President Vladimir Putin put nuclear forces on a higher alert. Shares of European banks with links to Russia suffered the sharpest declines on the region's exchanges Monday, as Western nations intensified financial sanctions on Moscow following the invasion of Ukraine. The exclusion of Russian banks from international payments means that these financial institutions can no longer repay their debts to their European creditors.

The Russian central bank more than doubled interest rates to 20% (from 9.5%) on Monday to compensate for the increased devaluation and inflation risks, as the ruble plunged following further moves by Western powers to the country over the invasion of Ukraine.

Nifty recovered smartly from the morning lows with sharply positive advance decline ratio. FPI activity on the sell side seemed to be limited today. Nifty could now face resistance at 16837-16900 band while 16516-16548 band could provide support.

Source : Equity Bulls

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