Daily Markets Wrap - March 11, 2022 - HDFC Securities

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

Nifty rose for the fourth consecutive session on March 11 post a range bound trade. Nifty opened lower and began to rise soon thereafter to make an intra day high at 1000 Hrs. It remained in a very tight range thereafter and closed minorly in the positive. At close, Nifty was up 0.26% or 43.5 points at 16638.4.

On a day when the volumes on the NSE were much lower than recent average, Healthcare, Oil & Gas and Metals indices gained the most while Auto index fell the most. BSE Smallcap index gained 0.9% while Midcap index rose 0.45%.

Asian shares extended a global slump on Friday after the fastest U.S. inflation rate in four decades bolstered expectations for more aggressive rate hikes, while Chinese equity markets recovered early losses on regulatory assurance over U.S.-listed mainland firms. European stocks rose on Friday as investors clung to hopes the global economy would continue to grow despite the war in Ukraine and yet more evidence central banks will need to tighten policy fast to tame inflation.

Automobile dispatches to dealerships fell 23% in February 2022 from a year earlier, said Society of Indian Automobile Manufacturers (SIAM), as semiconductor shortage, increase in vehicle prices due to new regulations and other factors continued to affect demand. Domestic passenger vehicles, two-wheelers, and three-wheelers wholesales fell to 13,28,027 units from 17,35,909 units in February 2021.

Nifty snapped a four week losing streak and ended the week in the positive gaining 2.37%. Nifty on daily charts made an inside day (high low of the day within the high low band of the previous day) and hence cannot throw signals on the near term movement. We feel that Nifty could correct minorly for the next few sessions and later rise to cross the 16800 highs towards 17050. On falls it can take support from the 16250-16350 band. The US Fed meet next week (on Mar 16) could throw up some volatility in global equity and bond markets.

Source : Equity Bulls

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