Markets remained volatile in continuation of the trend and lost almost half a percent. After a weak start, recovery in select banking, IT and auto majors gradually pulled the index higher, but the resurgence of selling pressures in the last few hours once again erased all gains. Finally, the Nifty index closed 0.3% lower to close at 17231. The concerns and pessimism of the last three trading sessions carried over into today's trading and Nifty traded as shaky and choppy. Indeed, the benchmark Nifty seems to be having a hard time staging a meaningful rebound. Blame it on tensions between Russia and Ukraine, and the Fed's hawkishness still exudes negative sentiment. Markets are in wait-and-watch mode in line with global peers, closely monitoring the Russia-Ukraine crisis for clues. Meanwhile, the index's volatile swings combined with the selling in broader markets are making life difficult for traders. We therefore recommend limiting positions and keeping existing ones hedged until markets stabilise. Market closed lower for the fourth straight day on February 21 amid volatility from the Ukraine crisis. At the close, the Sensex was up 149 points to 57683 and the Nifty was up 69 points to 17206.
Technically, Nifty’s still paints a bearish picture on the
long-term charts; Downside risk seen at 16400 level. From a chart technical
perspective, the technical landscape will only improve significantly above the
Nifty 17800 level. For Tuesday trading until the 17425 Nifty’s level is
resistance, volatility will be the hallmark and the persistent bulls should
strictly not take intraday strength as the light at the end of the tunnel.
Expect downfall under the Nifty 17050. Technically, after the morning
fall, Nifty took the support at 17050 and bounced back sharply, but once again
it failed to close above the 20-day SMA, which is heavily negative. A long leg
doji formation has formed on the daily charts, the pattern of which indicates
bulls and bears indecisiveness. We believe 17225-17275 would be the immediate
resistance level on the Nifty. For the bulls above, the index could go as high
as 17350. On the upside, trading below 17150 could amplify weakness to 17000-16800.
Resistance: 17275, 17325, 17400
Support: 17175,
17125, 17050
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