Daily Market Commentary - March 4, 2022 - Bonanza Portfolio

Mr. Harsh Parekh, Technical Analyst - Bonanza Portfolio

Market slides sharply amid the invasion of Europe's largest nuclear power plant by Russia spooking fear amongst investors as the Index closed below 16,250. Among sectors, except IT all other indices ended in the red with auto, metals, power, capital goods, realty down over 2-3 percent. BSE midcap index shed 2.3 percent and the small-cap index fell 1.6 percent. Benchmark indices closed at 16,245 and 54,333 respectively.

The index started off with a gap-down opening of around 150 points and thereon continued with downside momentum breaching the previous day's low and important level of 16,200 but somehow managed to give a sharp intraday recovery with sellers turning active again at higher levels in the later half of session.

On the daily charts, it is trading below its 200 Day EMA placed near 16,700 levels which are acting as a stiff resistance. Moreover, the structure of the Index has turned bearish and is trading in a broad range between 16,150-16,800. On weekly charts too, it has started to trade below its 50 EMA indicating negative bias for upcoming trading sessions.

Going further Nifty has to close above 16,450 for the further upside till 16,800/17,000 levels respectively. On the downside, meaningful supports are placed at 16,000 & 15,800 respectively where Put option writers have added new contracts.

On the global front, Russian forces shelled Europe's largest nuclear plant, sparking a fire as they pressed their attack on a crucial energy-producing Ukrainian city and gained ground in their bid to cut off the country from the sea. Rising oil prices along with uncertainties on supply change disruption have instilled fears amongst participants indicating a rise in inflation.

Titan Company, Maruti Suzuki, Asian Paints, Hero MotoCorp, and Tata Motors were among the top Nifty losers. On the other hand, Dr. Reddy's Laboratories, ITC, Tech Mahindra, Sun Pharma, and UltraTech Cement were the biggest gainers.

Source : Equity Bulls

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DailyMarketCommentary Nifty BonanzaPortfolio Sensex BSEMidcap