Daily Market Commentary - Feb 28, 2022 - Bonanza Portfolio

Mr. Harsh Parekh, Technical Analyst

Smart recovery was witnessed in today's session on the back of peace talks between Ukraine and Russia as Nifty closed just above 16,750. Among sectors, the metal index gained 5 percent, the oil & gas index gained 2 percent and the power index gained 1.5 percent, while bank and auto indices were trading in the red. BSE midcap and small-cap indices are up 0.5 percent each. Benchmark indices closed at 16793 and 56247 respectively.

The index started off with a gap-down opening of 200 points and reversed its momentum in the first hour itself. A trending trading session was witnessed almost throughout the day with selling getting absorbed on almost all intraday dips. On the daily charts, it is trading just above its 200 Day EMA which is placed at 16,720 which should act as an important level. Moreover, the structure of the index has turned negative and has been giving signs since the last many trading sessions with the downward sloping trendline acting as good resistance. Going ahead 16,850 should be taken out on a closing basis for more possible upside till 17,000-17,050 levels. On the downside, if the index starts trading below 16,400 levels we may revisit 16,200 levels and even further to 16,000.

Global markets took a breather as peace talks have initiated between Ukraine and Russia on the border of Belarus. Russia's central bank announced that it was more than doubling its key interest rate to 20 percent because the Russian economy's situation had "drastically changed. The value of the Ruble also continued to collapse against the Dollar and the Euro on the Moscow Stock Exchange impacting global commodity prices.

Hindalco Industries, Tata Steel, Power Grid Corporation, JSW Steel, and BPCL were among gainers on the Nifty, while losers included HDFC Life, Dr. Reddy's Labs, M&M, Axis Bank, and HDFC Bank.

Source : Equity Bulls

Keywords

DailyMarketCommentary Nifty Sensex BonanzaPortfolio