Daily Markets Wrap - March 7, 2022 - HDFC Securities

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

Nifty fell sharply on March 07, recovering minorly from the intra day lows as global stock markets came under selling pressure following crude oil prices touching $130 a barrel. Nifty opened gap down and fell more. It made a double bottom in the 15711-15753 band through the day but inched up towards the end of the session. At close, Nifty was down 2.35% or 382.2 points at 15836.1. Nifty closed at a seven month low and fell the most in 7 days.

On a day when the volumes on the NSE were higher than recent average, Metals, Oil & Gas and Telecom indices rose the most while Realty, Banks and Auto indices fell the most. BSE Smallcap and Midcap indices fell 2.25-2.3%.

European stocks opened in the red as the war in Ukraine continues to hit commodity markets after the threat of a potential ban on Russian oil imports helped spur a surge in prices. Asian stocks were down as the prices of crude oil rose as the specter of sanctions on Russian oil exports loom large.

Nifty is now close to the supports of 15700-15900. It has seen buying support from this band twice during the day. However advance decline ratio remains down at 450:1873. The state assembly elections exit polls result expected in the evening could bring an end to one uncertainty faced by the markets. Unless the outcome is severely against the BJP, we think that the markets could bounce up in the next few sessions not getting too perturbed by the developments in Europe.

Source : Equity Bulls

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