Bulls successfully defend 17000 bastion

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

Indian markets snapped a 3-day losing streak on Monday amid high volatility. The benchmark indices found support near the crucial support of 17,000 mark, and rallied during mid-afternoon trade, buoyed by bank and auto stocks. The Nifty re-claimed its 17,200 mark.

US markets booked second straight week of gains, as investors largely looked past the Russia-Ukraine war to increasingly hawkish commentary from Federal Reserve officials. Moscow signaled on Friday it was scaling back its ambitions in Ukraine to focus on territory claimed by Russian-backed separatists.

Amongst the sector, Nifty PSU banks, Metal and OIL/Gas were the top gainers while Nifty Consumer durables, Pharma and IT Indices ended in the red. Hotels stocks continued their sharp upside move for the second day in the row.

The market breadth, indicating the overall health of the market, was weak. On the BSE, shares 1,175 rose and 2,306 shares fell. Nifty Midcap and Small cap 100 Index underperformed the Benchmark Indices by ending the day with the losses of 0.2% and 0.7% respectively.

We recommend traders to maintain long positions with 16800 as stop loss. The trend of the market is bullish and chances of moving up from the current consolidation looks much higher.

Source : Equity Bulls

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