Daily Market Commentary - Jan 21, 2022 - Bonanza Portfolio

Mr Vishal Wagh, Research Head - Bonanza Portfolio

The market continues its downward journey with the fourth consecutive day of selling. Nifty opened the gap down and headed to its crucial support of 17,500 zones. It moved in a range-bound manner with weakness but slight recovery was seen towards the end. All sectoral indices barring FMCG ended in the red with the midcap and small-cap indices shedding 2 percent each. Both Nifty and Sensex closed at 17,617 and 59,037 respectively.

On the daily charts, this is the 4th day of a consecutive fall where sellers have been aggressive indicating a short-term trend reversal. 4th day of negative closing on the daily chart indicates weakness in the market which may extend over the near future. Going ahead, the index has to close above 18,000 to continue its upward trajectory and on the downside, now 17,500 should act as good support where a minor pullback was visible in today's session.

The ongoing selling by FIIs and weak Indian rupee forced the domestic market to continue surrendering its gains, with all major sectors trading under pressure. Weak sentiments from global markets due to persistent inflationary worries and weaker-than-expected earnings also added to the selling pressure. Along with global disturbances, the uncertainties regarding the upcoming Budget will likely keep the domestic market highly volatile in the coming days. Markets will react to the earnings of two heavyweights- Reliance Industries and ICICI Bank in early trade on Monday.

HUL, Maruti, HDFC Bank, HDFC Ltd and Nestle were the top Nifty gainers, while losers included Tech M, Tata Steel, Bharti Airtel, Bajaj finserv, Indusind bank.

Source : Equity Bulls

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DailyMarketCommentary BonanzaPortfolio Nifty Sensex