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Below Quote Daily Market Analysis 22 February 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets plunged sharply lower and lost over one and a half percent, tracking weak global cues. After the weak start, the Nifty index gradually drifted lower as the day progressed and slipped below the support zone of long term moving average (200 EMA) on the daily chart as well. It finally settled closer to the day’s low at 17554.30 levels. The pressure was widespread wherein continuous decline in the banking heavyweights combined with a further dip in the IT and energy majors were largely weighing on the sentiment. In line with the trend, the broader indices too shed over a percent each.

The pace of decline was gradual till Tuesday but a sharp cut in the US markets has completely changed the tone. Indications are pointing towards the same tone to continue, with the next major support around the 17250-17400 zone. In case of any rebound, the 17700-17900 zone would act as a strong hurdle. Traders should continue with a “sell on rise” approach and limit positions.

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