Daily Market Commentary - March 3, 2022 - Bonanza Portfolio Ltd

Mr. Harsh Parekh, Technical Analyst - Bonanza Portfolio Ltd

The market ended lower amid volatility due to weekly F&O expiry and the Nifty slid just below 16,500. Among sectors, auto, capital goods, and bank fell 1-2 percent each, while metal, IT, oil & gas, power indices gained 1-2 percent. Benchmark indices closed at 16,498 and 55.102 respectively.

The index started off with a gap-up opening of around 100 points and thereon continued with downside momentum almost for the entire day with selling intensifying in the second half owing to expiry volatility. On the daily charts, it is trading below its 200 Day EMA placed near 16,680 levels which are acting as a stiff resistance. Moreover, the structure of the index has turned negative and is trading in a narrow range between 16,200-16,800. A downward sloping trendline can be drawn which indicates that lower highs lower low formation is in the making. 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.

The Russian rouble slid further, hitting record lows against the Dollar and Euro, after rating agencies Fitch and Moody's downgraded Russia's sovereign debt to "junk" status citing the impact of Western sanctions amid the Ukraine-Russia crisis.

UltraTech Cement, Asian Paints, HDFC Life, Shree Cements, and Eicher Motors were among the top Nifty losers. Gainers were ONGC, UPL, Power Grid Corp, Wipro, and Tech Mahindra.

Source : Equity Bulls

Keywords

DailyMarketCommentary BonanzaPortfolio Nifty Sensex