Below are Technical Quote On Today`s Market Performance by Mr. Deepak Jasani, Technical Research Analyst, HDFC Securities
Indian benchmark equity indices fell the most in two months on Feb 22, ending lower for the fifth consecutive session. Nifty opened lower and kept falling by making lower top lower bottom during the session. A bounce between 1420 Hrs and 1450 Hrs created hopes for a reversal, but these were soon dashed. At close, the Nifty 50 index fell 2% or 306 points to end at 14,675.7.
Volumes on the NSE were in line with recent averages. Among sectors, Metals ended in the positive, while Media, IT, Realty, PSU Bank, Pharma, Auto ended in the negative. The Nifty Midcap index fell 1.3% while the Smallcap index declined 1.2%. The India Volatility Index rose the most in two months at its highest in 7 months, ending 14.5% higher at 25.47.
Asian stocks ended mostly lower on Monday amidst lingering worries about inflation, high valuations and worries over policy tightening. European markets opened lower as caution over sharply rising bond yields, and concerns over sharply rising inflation, outweighs increasing optimism over the vaccine rollout program, and the path to an economic reopening. All eyes will be on European Central Bank President Christine Lagarde's speech on stability, economic co-ordination and governance in the EU later in the day.
The yield on the benchmark US 10-year Treasury rose to 1.37%, after rising 14.5 basis points last week. A key part of the Treasuries curve -- the gap between 5- and 30-year yields -- touched the highest level in more than five years. Copper prices rose above $9,000 a ton, Brent oil climbed above $63 a barrel as Goldman Sachs Group Inc. predicted prices could advance into the $70s in coming months. In India 10 Year Gsec yields in India touched a 6 month high of 6.19%.
Nifty has fallen 5% from its all time high in about 5 sessions. Indian equities came under selling pressure due to Cautious trade in markets abroad, Slowing FPI inflows, profit taking and breach of key technical levels. Rising crude oil prices that could impact the macros and inflation and rising 10 year Gsec yields were the key local factors that shook the equity markets. Also markets have run up quite sharply since end January 2021.
Nifty made a low of 14635. Nifty 14527 and 14336 are key retracement levels on the downside with the latter also being a gap support. In the meanwhile 14898-14977 could be the resistance for any bounce.
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