Daily Market Commentary - April 25, 2022 - Bonanza Portfolio

Mr. Harsh Parekh, Technical Analyst, BONANZA PORTFOLIO LTD

Indian bourses opened in red following weak trade in Asian market peers as global sell-off triggered by aggressive US Fed tightening . Except bank, all other sectoral indices ended in the red with auto, capital goods, FMCG, healthcare, IT, power, metal, oil & gas, realty down 1-4 percent. Both the benchmark indices closed at 16,953 & 56,579 respectively.

Today's session we witnessed Nifty trading in a narrow range with 17,050 acting as a stiff resistance and 16,850 proving as a good support. Today's gap still remains unfilled which will act as immediate resistance. Index still trades below its 21, 50 & 100 day EMA moving averages which is a sign to remain cautious on the long side. Prices are respecting its 200 day EMA which is placed near 16,850. Going forward, the nifty will look for immediate support near 16,950-17,050 and on the upside, resistance can be faced near 17,250-17,300 levels.

The hawkish statement from the US Fed dented sentiment globally including our markets. Additional pressure came in as a private report cut India's 2022-23 economic growth forecast by 70 basis points to 7 percent, citing slowing global growth due to high commodity prices, and weak local demand because of energy price hikes, inflationary pressures and a struggling labour market.

Coal India, BPCL, Tata Steel, Hindalco Industries and SBI Life Insurance were among the top Nifty losers while gainers included Bajaj Auto, ICICI Bank, HDFC Bank, Maruti Suzuki and HDFC.

Source : Equity Bulls

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DailyMarketCommentary BonanzaPortfolio Nifty Sensex