Daily Markets Wrap - Feb 14, 2022 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell sharply for the second consecutive session on Feb 14 following weak global cues. It witnessed the worst one day percent fall in 10 months. Nifty opened with a large downgap, made an attempt to recover, but witnessed another round of selling post 1330 Hrs. At close, Nifty was down 3.06% or 531.9 points at 16842.8. In the process it became the worst performing index in the Asian region.

On a day when the volumes on the NSE were a little higher than the recent average, all sectoral indices ended in the negative with Realty, Metals, Banks, Power, Capital Goods and Auto indices losing the most. BSE Midcap index closed down by 3.51% while the Smallcap index closed down 4.15%.

India's wholesale price-based inflation eased for the second consecutive month in January at 12.96 per cent (vs 13.56% in December 2021), even though food prices hardened.

Global stocks slid Monday and commodities including crude oil surged as geopolitical risks over Ukraine rippled through global markets. European shares slipped to their lowest level in 20 days on Monday, with travel, banking and auto stocks leading the slump as investors fretted over geopolitical risks following warnings that Russia could invade Ukraine at any time.

Nifty remains under pressure due to rising crude oil prices, the Russia Ukraine conflict, fear of fast rate hikes across the globe and subdued corporate results. Advance decline ratio dipped sharply to much under 1:1 and came in at the lowest since Jan 24. In case the Nifty goes below 16410 over the next three days, we can lock the recent high of 18351 as an intermediate top and Nifty could keep facing selling pressure on rises. Any relief on the Russia Ukraine front could result in a temporary bounce which can be sold into.

Source : Equity Bulls

Keywords

Nifty MarketWrap HDFCSecurities