Market Commentary

Nifty witnessed profit booking on Higher crude oil prices

Posted On : 2022-03-23 18:10:40( TIMEZONE : IST )

Nifty witnessed profit booking on Higher crude oil prices

Mr. Devarsh Vakil - Deputy Head Retail Research, HDFC Securities

Nifty could not hold on to the opening gains and slipped 240 points from day highs in today's trading. Bank Nifty too witnessed a similar fall and closed near day's low. Higher crude oil prices, surging bond yields led to profit booking in today's session after yesterday's stellar move.

US 10 year bonds touched recent highs of 2.4% on worries of higher inflation. Crude oil prices surged by 2% in today's trade in Nymex and was trading near $ 111.5 per barrel ahead of weekly inventory data.

The market breadth turned negative. 1,468 shares rose while 1,927 shares fell on BSE. Mid-cap Index bucked the trend and closed in the green suggesting buying interest in select stocks. Amongst the sectors- Auto, Banks and Realty were the losers. Nifty Metal index surged by more than a percent today.

At the close, Nifty was trading a 17,223, 0.53% or 609 points lower. Nifty and Bank Nifty both are still holding above their 5 days EMA placed at 17,138 and 35,971 respectively. Traders should continue to hold long positions with 17,100 as stop loss.

Source : Equity Bulls


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