Daily Market Commentary - Feb 17, 2022 - Bonanza Portfolio

Mr Vishal Wagh, Research Head - Bonanza Portfolio

Benchmark indices extended the losses amid high volatility owing to weekly expiry with the Nifty ending just above 17,300. On the sectoral front, the Banking index slipped 1 percent, while the Power index gained nearly 2 percent. BSE midcap and small-cap indices ended in the red. Both the indices closed at 17,304 and 57,892 respectively.

Today, the Index saw rangebound swings as selling got instensified in final hour and option writers were active at both ends. On the daily charts, it wasn't able to break the downward sloping trendline thereby continuing the lower highs lower low formation. Price action suggested that 50 day EMA is acting as a strong resistance which is placed near 17,490 levels. Going ahead, 17,500 needs to be broken decisively in order to continue upside trajectory while 17,200 remains a good support.

On the global front, tensions related to Russia-Ukraine spooked fear amongst investors. Russia's military build-up near Ukraine is growing, not shrinking, warns the West. The US says Russia has added 7,000 more troops near Ukraine border fuelling Russia-West tensions.

ICICI Bank, Axis Bank, UltraTech Cement, IndusInd Bank and UPL were the top Nifty losers, while gainers included Tata Consumer Products, ONGC, HDFC, Reliance Industries and HDFC Life.

Source : Equity Bulls

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