Daily Market Commentary - April 4, 2022 - Bonanza Portfolio

Mr. Harsh Parekh, Technical Analyst - Bonanza Portfolio

Indian bourses rallied 2% on the back of sentiment upbeat with the merger news of HDFC twins. All the sectoral indices ended in the green with bank, metal, power, rose 2-3 percent. BSE Midcap and Small-cap indices rose 1 percent each. Both the benchmark indices closed at 18,053 & 60,611.

Nifty has given a V-shape recovery post its panic fall till 15,650 and has recovered back almost entirely. A close above 17,800 which was the intermediate resistance has given conviction to the participants to take trades on the long side. Index has been trading above all its major moving averages and importantly it is sustaining well above its 200 Day EMA. After today's close, Nifty will look to continue for immediate targets of 18,200 & 18,350, respectively whereas on the downside 17,800 should act as immediate support followed by 17,680.

The merger for HDFC & HDFC Bank is regarded as a stellar Win-Win call for all stakeholders. This merger will create the biggest financial services conglomerate to compete globally. To shareholders of HDFC Limited as on record date will receive 42 shares of HDFC Bank (FV Re. 1/- each) for 25 shares of HDFC Limited (FV Rs. 2/- each).

Post merger, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC Limited will own 41% of HDFC Bank. The upcoming focus of the market will be on earnings reports and RBI meeting this week.

HDFC Bank, HDFC, Adani Ports, HDFC Life and Kotak Mahindra Bank were among the top Nifty gainers. Infosys, Titan Company and Tata Consumer Products were the top losers.

Source : Equity Bulls

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DailyMarketCommentary Nifty Sensex BonanzaPortfolio