Daily Market Commentary - Feb 14, 2022 - Bonanza Portfolio

Mr Vishal Wagh, Research Head - Bonanza Portfolio

Benchmark indices extended the losses in the final hour of trading with Nifty below 16,850. All the sectoral indices ended in the red with auto, bank, oil & gas, PSU Bank, pharma, FMCG, metal, realty and capital goods indices shed 2-6 percent. BSE Midcap and Small-cap indices lost 3-4 percent. Both the indices closed at 16,842 and 56,405 respectively.

Today, Index started off with a gap down of around 300 points and there onwards saw sideways to negative trading session with selling intensifying in last hour. Important supports of 17,000-17,050 has been broken decisively and a bearish morubozu candle is formed which states that sellers were extremely aggressive. A symmetrical triangle breakdown is visible and here on sell on rise strategies will be more effective. On the upside, nifty has to break 17,000-17,200 levels again in order for the bulls to be back in action. A lower top lower bottom formation has been initiated and now nifty can retest 16,400 levels soon.

Oil prices were steady on Monday after hitting their highest in more than seven years on fears that a possible invasion of Ukraine by Russia could trigger U.S. and European sanctions that would disrupt exports from one of the world's top oil producer. Risk sentiment was further dampened ahead of the Fed's emergency meeting which heightened fears of aggressive monetary tightening.

JSW Steel, HDFC Life, ITC, Tata Steel and Tata Motors were the top Nifty losers, while the only gainer was TCS.

Source : Equity Bulls

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