Daily Markets Wrap - March 8, 2022 - HDFC Securities

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

Nifty snapped a four day losing streak on March 08 after recovering from early declines. Nifty opened marginally lower and then began to rise making an intra day high at 1010 Hrs. It later fell to make an intra day low at 1240 Hrs. A sharp surge post 1330 Hrs following the recovery in European markets took the Nifty into positive territory. At close Nifty was up 0.95% or 150.3 points at 16013.5. Nifty was the only index in the Asian region to end up in the positive.

On a day when the volumes on the NSE were mildly higher than recent average, Realty, Capital Goods, IT and Healthcare indices rose the most while Metals and Oil & Gas indices fell the most. BSE Smallcap and Midcap indices rose between 1.33% and 1.46%.

Most emerging Asian markets tumbled on Tuesday on surging crude prices as the United States mulls a ban on oil imports from Russia following its invasion of Ukraine. Ultra-high commodity prices kept shares and currencies in several emerging Asian economies under pressure, stoking worries over inflation and slowing economic growth in countries only just emerging from a pandemic-driven slump.

European stock markets erased early declines and pushed higher on Tuesday despite Russia's top energy official warning that the country could cut off gas flows to Europe through the existing Nord Stream pipeline. A report said the European Union was considering joint bond sales to help counter the fallout from Russia's invasion of Ukraine as the bloc faces massive financing needs as it begins to reform its military and energy infrastructure following Russia's invasion of Ukraine.

Nifty bounced up smartly after forming a doji after a fall and has formed an engulfing bullish pattern at the lows. Market breadth has also improved. This bounce/rally could last for a few days unless the geopolitical situation takes a turn for the worse, 16134-16203 could be the next resistance for the Nifty while 15863 could be a support for the near term.

Source : Equity Bulls

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