HSL Prime Research

Opening Bell - Daily Morning Commentary

The short-term bottom seems in place - 22800 is a key support.

US stock markets were closed for trading on Monday for the President's Day Holiday. At least six Fed officials are due to speak this week, and markets will pay attention to their views on future rate cuts.

European shares marked record highs on the prospect of a Ukraine peace deal. The Australian dollar stood near a two-month high ahead of a central bank rate decision. The Reserve Bank of Australia is expected to cut its cash rate by a quarter-point to 4.10%, its first reduction in over four years.

Meanwhile, the rebound in Chinese markets continues, with tech shares listed in Hong Kong hitting a three-year high on Monday as President Xi Jinping sat down with top tech leaders in Beijing. The Hang Seng tech index is up more than 30% in a month.

Financial markets are adjusting to the increasing likelihood of the Bank of Japan (BOJ) raising interest rates sooner and to higher levels than anticipated. Hawkish signals from the central bank, coupled with persistent inflation, have led to a significant surge in Japanese bond yields.

The Nifty snapped its eight-session losing streak, posting a modest gain of 30 points, or 0.13%, to close at 22,959.. After hitting early morning lows, the index staged an impressive recovery of nearly 250 points, demonstrating resilience. The anticipated support band of 22750-22800 worked out well. From a short-term perspective, a bottom appears to be in place. Further bearish bets should be avoided as long as the Nifty holds above the 22,800 level on a closing basis. On the upside, the 23,235 level will likely act as a key resistance in the near term.