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Below is the Daily Market Analysis 28 February 2022 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets started the holiday shortened week with high volatility. The benchmark witnessed a gap down opening amid muted Asian cues and tension between Russia-Ukraine. However, as the day progressed indices started recovering gradually as news of negotiation between Russia and Ukraine led to the positive sentiments. Consequently, the Nifty ended with strong gains of 0.8% at 16,794 levels. The broader markets ended higher in the range of 0.9-1.1%. Except for finance and auto, all the sectoral indices ended in the green.

Markets will first react to GDP data outcome in early trade on Wednesday. At this point, participants are keeping a close watch on updates related to Russia & Ukraine. Any fruitful negotiation outcome will boost sentiments however on the flip side any dissatisfaction to either country, may once again impact markets worldwide. We would remain cautious and wait for some meaningful sign of de-escalation. In the meantime, traders should maintain hedged positions.    

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