Daily Market Commentary - April 18, 2022 - Bonanza Portfolio

Mr. Harsh Parekh, Technical Analyst - Bonanza Portfolio

Indian bourses started off the day with a gap down opening of almost 300 points on the back of weak global cues as nifty closed below an important level of 17,200. IT index down 4.7 percent and realty and bank indices down 1 percent each. However, buying was seen in the auto, metal, FMCG and power names. The BSE midcap and smallcap indices down 1 percent each. The broader markets did see buying interest in select pockets like Defence, Paper & Fertilisers on the back of continued positive tailwinds. Both the benchmark indices closed at 17,173 & 57,166 respectively.

Today's session saw nifty continuing the trend with downward bias as no conviction was seen on the upside. After many trading sessions ,Index has again started to trade below its 21, 50 & 100 day EMA moving averages which is a sign to remain cautious on long side. After today's close, on the lower end, support is visible at 17000 -17,050 whereas resistance is placed at 17,250-17300. Since nifty broke 17,400 level, a small correction is expected for upcoming trading sessions.

On the global front, US 10Y Yield is Above 2.80% with Crude oil climbing Back Above $112/bbl. China's Q1 Retail Sales Slump By 3.5% and India's WPI Inflation came at 14.55% in March vs 13.11% (MoM). Unfavourable start to earnings season in heavyweight stocks of IT and banking sector led to heavy sell-off and dampened investor sentiments.

Infosys, HDFC, HDFC Bank, Tech Mahindra and Apollo Hospitals were among the top Nifty losers. NTPC, SBI Life Insurance, HDFC Life, Coal India and Tata Steel were the top gainers.

Source : Equity Bulls

Keywords

DailyMarketCommentary Nifty Sensex Smallcap Midcap BonanzaPortfolio