22 Feb , 2022 By : monika singh
Domestic benchmark indices have started the week on a cautious note and might continue facing some volatility ahead. S&P BSE Sensex currently stands at 57,683 points, falling 0.26% on Monday while NSE Nifty 50 is at 17,206 after sliding 0.40%. Geopolitical tensions between Russia and Ukraine are expected to weigh in on domestic markets today with the SGX Nifty tanking more than 200 points ahead of the day’s trade. Global cues were also in the negative with Wall Street having closed in red yesterday.
Global watch: On Wall Street, NASDAQ plummeted 1.23%, followed by S&P 500 and Dow Jones. Among Asian stock markets, Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all deep in the red.
Technical take: With successive losses on Dalal Street, Nifty 50 has formed a small body of positive candle was formed on the daily chart with long upper and lower shadow. “Technically, this pattern indicates a formation of high wave-type candle pattern and this displays high volatility in the market. Normally, such formations after a reasonable decline indicate a bottom reversal in the market. But, having formed this pattern at the high, within a narrow range movement, the chances of any important bottom reversal is ruled out,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch out: Analysts believe that Nifty 50, on a daily chart, has been trading below 21*50-DMA with the negative crossover which suggests weakness for the next session. “At present, the index has support at 17000 levels breaching below the same can show further downside till 16900-16800 levels while resistance comes at 17500 levels,” said Palak Kothari, Research Associate, Choice Broking. With no strong evidence of bottom reversal, Nagaraj Shetti said that more weakness could take the index lower to 16,800.
FII and DII watch: Foreign Institutional Investors continued to be net sellers of domestic stocks, pulling out Rs 2,261 crore from domestic markets. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 2,392 crore.
Call and Put OI: Call open Interest is the most at 18000 strike with 89.8 lakh contracts, followed by 48.8 lakh contracts on 17500 strike. Put open interest is the highest at 17000 strike with 63.1 lakh contracts. 16500 strike has 41.1 lakh contracts.
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