Momentum Picks - February 21, 2022 - ICICI Direct

Market Outlook

Equity benchmarks concluded a volatile week on a subdued note amid concerns over geopolitical issues. The Nifty lost 0.5% to end the week at 17280. The broader market relatively underperformed the benchmark as Nifty midcap, small cap lost over 2.5% each. Sectorally, barring IT, all other sectors ended in red weighed by metal, financials, realty.

Technical Outlook

- The index saw elevated volatility during the week amid escalated geopolitical issues and spike in crude oil prices. In the process, the Nifty managed to hold the key support threshold of 16800 for fourth time in last two months while absorbing host of negative news, highlighting inherent strength. As a result, weekly price action formed a small bull candle with shadows on either side, indicating rise in volatility while sustaining above key support of 16800

- Key point to highlight is that, in the ongoing corrective move (since mid-January 2022) the index has failed to sustain above previous week's high. Therefore, in the coming expiry week, a decisive close above last week's high (17490) along with cool off in India VIX (that gauges market sentiment) would be the key monitorable that would set the stage for a gradual move towards 17800 in coming weeks as it is confluence of: a) 61.8% retracement of mid-January decline (18350-16836), is at 17772 b) February high is placed at 17794

Today's calls

Intraday - Larsen & Toubro, Nippon AMC

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords

MomentumPicks February212022 ICICIDirect