Analyst Somesh View - Closing Comments March 4

2021-03-04 17:39:08 By Marepally Krishna


Nifty formed bullish candle with a bigger shadows on daily Chart indicated tussle between bulls and bears in the market.


Nifty opened sharply lower at 15026 and hit the day's low of 14980. Nifty immediately showed recovery up to 15202 but failed to surpass previous closing levels. Finally, it settled at 15080, down 164 points or 1.08 percent.


Nifty snapped its three day gaining streak and closed a percent lower on weak global cues, but formed a bullish candle on the daily chart as the closing was higher than opening levels. Nifty defended the psychological 15000 mark and closed above the same level.


Markets opened weak on muted global cues and drifted lower during the afternoon even as we saw heightened investor interest in PSU stocks on hopes of privatisation and asset monetisation. In the broader market Sugar stocks registered smart gains for the second day in a row.


Domestic markets along with its global peers mirrored the wounded trend of the US market. The surge in US bond yields added selling pressure in technology stocks, forced Wall Street to close lower. Blue-chips were much affected by the weak global cues, but Mid & Small caps with its increased investor confidence retained its positive momentum.


Excessive volatility in the global markets, mainly due to the rise in the bond yields, impacting sentiment on the domestic front too and we don’t expect any relief from that front anytime soon. We reiterate our cautiously optimistic view on markets and suggest preferring hedged positions instead of outrights.


Moreover, buoyancy in Mid and Smallcap space paved the way for positive advance decline ratio, hinting sentiment inside the broader market is still somewhat positive.


Bulls appear to have been choked by the overnight negative global cues as Nifty opened with a sharp cut. However, it was heartening to see Nifty taking support and stabilising around psychological landmark of 15000 level.


In fact, it seems to have bounced after testing the bullish gap zone present between 14995 /14959 level, registered on last Wednesday's session with an intraday low of 14980. Hence, as long as this support is intact, one can expect Nifty to consolidate in the zone of 15000/15276 level.


Considering highly volatile and uncertain phase which markets are passing through, Traders to remain neutral. Nevertheless, positional shorting opportunity shall arise on a close below 15000 level whereas strength shall resume above 15276 level.

Expert's View