Market Overview:
The domestic market experienced a
momentary pause on Friday after hitting another record high earlier in the day,
driven by positive signals from global markets. Notably, strength was observed
in the capital goods and industrial sectors, supported by advancements in
manufacturing and services. Despite nearing the end of the earnings season, the
market remains buoyant, riding on pre-election momentum. However, concerns
persist over rising crude oil prices, surging US bond yields, and stretched
valuations, which may continue to prompt selling by Foreign Institutional
Investors (FIIs).
Key
Highlights:
The Nifty opened with gains and
consolidated throughout the day to close marginally in the red, down
approximately 4 points.
After reaching an all-time high of 22,297
in early trade, weakness in banking stocks weighed on the benchmark, closing at
22,212 on February 23.
Sensex also closed flat at 73,142, while
broader indices Nifty Midcap 100 and Nifty Smallcap 100 gained each, outperforming benchmarks.
Nifty ended flat but above the 22,200
level, forming a higher high and higher low series on both daily and weekly
charts.
The consolidation phase, lasting over a
month, may soon see a breakout or breakdown, with the former being more likely.
However, for a significant rally, Nifty
needs to give a decisive breakout above 22,250.
The range of 22300- 22400 is now
identified as the demand zone, and a slide below this range could push Nifty
back towards the 22,000 levels.
Technical
Analysis:
Nifty closed marginally in the red,
exhibiting consolidation around all-time highs on the daily charts.
Formation of a higher high and higher low
series on both daily and weekly charts suggests underlying bullish sentiment.
A decisive breakout above 22,250 is
crucial for sustaining upward momentum and triggering a significant rally.
The identified demand zone of 22150-
22050 serves as a critical support level, with a breach potentially leading to
a downward movement towards the 22,000 mark.
Conclusion:
The Nifty market continues to show resilience despite temporary pauses, with bullish sentiment prevailing amid global market cues and pre-election momentum. Investors are closely monitoring developments, particularly regarding potential catalysts for a breakout from the current consolidation phase. While uncertainties regarding crude oil prices, US bond yields, and valuations persist, the market remains cautiously optimistic. A decisive move above 22300 could signal a further upward trend, while maintaining support above the 22,100 - 22200 range is crucial for sustaining current momentum.
This report aims to provide insights into the recent performance of the Nifty market and key factors influencing its trajectory, aiding investors in making informed decisions in the current market environment.
No comments:
Post a Comment