Daily Markets Wrap - March 3, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell for the second straight session giving up the morning gains on fears of impact of rising commodity prices on inflation, currency, interest rates and corporate performance. Nifty opened gap up in line with other Asian markets but soon started to slide. It ultimately formed an intra day low at 1510 Hrs and then bounced up a little. At close, Nifty was down 0.65% or 107.9 points at 16498.

On a day when the volumes on the NSE were in line with recent average, Power, Oil & Gas, Metals and IT indices rose the most, while Consumer Durables, Capital Goods, Banks and Auto indices fell the most. BSE Midcap index fell 0.64% while Smallcap index closed up 0.35%.

Asian stock markets rebounded Thursday and oil prices climbed higher after the head of the Federal Reserve said he supports a smaller rise in interest rates than some expected. European stock markets weakened Thursday, as the conflict in Ukraine continued and investors digested the potential economic ramifications of surging commodity prices.

The conflict in Ukraine could reduce the level of global gross domestic product by about 1 percentage point by 2023 and add 3% to global inflation this year, the U.K.'s National Institute for Economic and Social Research estimated Wednesday, with Europe more exposed than any other region.

Nifty formed a bearish engulfing pattern but this has occurred at the lows and hence its predictive power is limited. Advance decline ratio remains positive and the smallcap index has ended in the positive suggesting that the selloff by the FPIs is happening mostly in largecaps. 16356-16748 could be the band for the Nifty in the near term.

Source : Equity Bulls

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DailyMarketsWrap HDFCSecurities Nifty Sensex Smallcap